List
and discuss the five common forms of departmentalization.
Answer
a. Functional departmentalization—jobs are
grouped by the functions (i.e., marketing, finance, human resources) performed.
This approach can be used in all types of organizations, although the functions
change to reflect the organization’s objectives and work activities.
b. Product departmentalization—jobs are
grouped by product line. In this approach, each major product area is placed
under the authority of a manager who’s a specialist in, and is responsible for,
everything having to do with that product line.
c. Geographical departmentalization—jobs are
grouped on the basis of a territory or geography such as southern, midwestern,
or northwestern regions for an organization operating only in the United
States; or for a global company, maybe U.S., European, Canadian, and
Asian-Pacific regions.
d. Process departmentalization—this method
groups jobs on the basis of product or customer flow. In this approach, work
activities follow a natural processing flow of product or even customers.
e. Customer departmentalization—jobs are
grouped on the basis of common customers who have common needs or problems that
can best be met by having specialists for each.
Source: Management,
11e (Robbins/Coulter)
