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Tuesday, April 7, 2015

Organizational Design | What is meant by departmentalization?




What is meant by departmentalization? 
In an essay, list and discuss the five common forms of departmentalization, their advantages and disadvantages.

Robbins / Coulter, MANAGEMENT, 12th edition, Pearson, 2014


This is a guidance answer ... your actual answer during the exam should be longer than this answer ...

1 comment:

  1. The basis by which jobs are grouped together is known as departmentalization.
    The five common forms of departmentalization are:
    a. Functional departmentalization - Here jobs are grouped by the functions (i.e., marketing, finance, human resources) performed. This leads to an increased efficiency in the organization because people with similar specialties, common skills, knowledge, and orientations are put together. It also leads to an increased coordination within functional areas. On the flip side, it gives a limited view of the organizational goals.
    b. Product departmentalization - Here jobs are grouped by product line. This allows the managers to specialize in particular products and services. It also helps the managers to become experts in their industry. On the other hand, this leads to duplication of functions. It also gives a limited view of organizational goals.
    c. Geographical departmentalization - Here jobs are grouped on the basis of a geographic region. This helps in more effective and efficient handling of specific regional issues that arise. It also helps in serving the needs of unique geographic markets. On the flip side, it leads to duplication of functions.
    d. Process departmentalization - This method groups jobs on the basis of product or customer flow. This approach efficiently manages the flow of work activities. But, the major disadvantage of this approach is that it can only be used with certain types of products.
    e. Customer departmentalization - Here jobs are grouped on the basis of specific and unique customers who have common needs. It allows specialists to handle customers' needs and problems. But, this also leads to duplication of functions. It causes departments to have a limited view of organizational goals.
    Most large organizations continue to use combinations of most or all of these types of departmentalization.
    Currently, a popular departmentalization trend is the increasing use of customer departmentalization. Because getting and keeping customers is essential for success, this approach works well because it emphasizes monitoring and responding to changes in customers' needs. Another popular trend is the use of teams, especially as work tasks have become more complex and diverse skills are needed to accomplish those tasks. One specific type of team that more organizations are using is a cross-functional team, which is a work team composed of individuals from various functional specialties.

    Robbins / Coulter, MANAGEMENT, 12th edition, Pearson, 2014
    www.pearson.co.uk

    This is a guidance answer ... your actual answer during the exam should be longer than this answer ...

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