Conclusion to the five types of departmentalization Most companies employ a mixture of different departmentalization types. Related: Types of Departmentalization Departmentalization results from the division of work and the desire to obtain organization units of manageable size and to utilize managerial ability. The activities of each process are assigned to a departmental head who is responsible for all the functions of concerned department. Automation will come nautrally to this scheme. Follow principle of occupational specialization. In conclusion the traditional organizational structures has five methods been used to departmentalizing work and workers such as the work Functional performs, the Product or Service offered, the target Customer or client, the Geographic region covered and the Matrix project that is combine or form two or more departmentalization to work together.
Process of forming employees into groups to accomplish specific organizational goals. It is appropriate for large-scale multi-product enterprises. Functional Departmentalization In functional departmentalization, an organization is organized into departments based upon the respective functions each performs for the organization. Sales would fall under the role of a server assisting customers and helping them select an enjoyable meal while operations in a restaurant centers on the preparation of food. Here, every individual department is responsible for producing and selling the type of product assigned to them. Most companies are concerned with producing a product or service for use by others.
She holds a professional business management qualification, a bachelor's degree in communications and a diploma in public relations and journalism. For example, the regional headquarter for Asia is in Singapore, and the regional headquarter for Europe is in London. Kelchner has a degree from Southern New Hampshire University in English language and literature. The departmental managers can delegate tasks and duties to the subordinates, and they are accountable to the chief executive for the performance of the department. The sales activities in an office supply firm can be broken down into three department c cs that serve retail, wholesale and government accounts. This method of departmentation is observed in the sales and service departments of many organizations where the major departmentation at the first level below the head of the organization is along functional line, but at the sub-department level, the sales department would have geographic regions or zones catered to by regional or zonal offices.
They are; basic organizational units and coordinating structure. It is helpful in fixing responsibilities and accountability. Departmentalization like this would effectively also be functional and possibly chain-of-command departmentalization at the same time. Companies may also group jobs in the organization by product. The top-level executives, groups activities in various departments, such as production, marketing, finance, human resource, research and development, etc. Moreover, sending managers to work in each region provides excellent training for upper level management positions where a broad perspective is required for success.
This is how s … ocieties progress andreshape themselves over time. Departmentalization leads to the benefits of specialization. The degree of decision-making authority is centralization and usually were made by the top management of the highest vertically structures hierarchy. Functional departmentalization may be advantageous because it can increase efficiency and expertise since all related activities are performed in one place by one group of people that specialize in that activity. So from this we can make out that the process of grouping different jobs into different units is called departmentation.
Responsibility for profits is at the top only. In that situation, such a weakness was not critical, but where technology, market, and sources of supplies were changed rapidly, the defect of such a structure became more obvious. Customs are various traditions or social mores which are passedfrom generation to generation. Excellent communication because they have a very specific requirement and output. Departmentalization based on a production process is depicted below.
Banking organization create departments on the basis of customer service like deposit, cash withdrawal, letter of credit, loan etc. Product-based departmentalization can create redundancies in the organization, which increase the cost of labor. For instance, full-time day students and part-time night students of graduate business programs in universities usually are different in demographic profile and personal needs. Shoes are never worn inside a house, or significant space. Staff Functions in a Restaurant Functional departmentalization in a restaurant allows the separation of sales and marketing tasks from those jobs connected with operations. Departmentalization involves dividing an organization into different departments, which perform tasks according to the departments' specializations in the organization. The advantage is focused on customer need rather than on products or business function.
For example, in an electronics manufacturing company, management may create departments for televisions, stereos or computer equipment. Brought to you by Customer Departmentalization Financial institutions are among those businesses that organize around specific groups of customers; for example, a bank might have a consumer, business and mortgage teams. Diagram Credits © Moon Rodriguez. Functional departmentalization allows workers to specialize in a particular area of the business while those working under a product based division of the organization become experts in their products. Customer departmentalization When a company has different customer bases, customer departmentalization allows better customer servicing. Might be developed by the departmental heads in conjunction with those who set organizational objectives. In some instances there may also be a General Manager or Owner who will oversee the entire operation and staff.