Geographic departmentalization is particularly important if tastes and brand responses differ across regions, as it allows for flexibility in product offerings and marketing strategies (an approach known as localization. Process departmentalization is a manner or practice of implementing a process through combining related activities into separate groups or specialized functional. The simple structure: for the small firm the divisional structure may vary-as by product, brand, customer, or geographic region product departmentalization. Departmentalization in the intermediate grades [carolyn l mcgowan] on amazoncom free shipping on qualifying offers. Product departmentalization organizes work and employees around the products or services the company produces for example, an automobile manufacturer might organize around the brands in its product line, while a clothing manufacturer might organize around women's clothing, men's clothing and children's clothing.
Divisional organizational structures divide the corporation into units based on factors such as geography or product line for example, a car manufacturer may have a separate division for each class of vehicle it produces. Departmentalization results in a better customer service the customers get quick and efficient service many organizations do geographic departmentalization and customer departmentalization. Common organizational structures learning outcomes differentiate between the four basic types of departmentalization (function, product, customer, and geography.
Each major product area in the corporation is under the authority of a senior manager who is specialist in, and is responsible for, everything related to the product line la gear is an example of company that uses product departmentalization. The geographic, functional, customer-based, product, service, matrix, marketing, and departmentalization of the organizational design has helped to determine that the line of business (or divisional) structure is the best suited organizational structure for the walmart corporation. Product departmentalization an organization can also divide itself by its product lines it creates a department for each product and that department controls all activities related to the product including development, production, marketing, sales, and distribution. Disadvantages of product departmentalization are creating duplication and it from ama 532 at new school hurt the business advantages of geographic. Free essay: starbucks organization structure and departmentalization form analysis starbucks is the biggest coffee shops network with over 19000 stores all.
As with product and customer departmentalization, location departmentalization can come with a higher overhead, as functional experts need to be hired for each location since regional departments can be hundreds and thousands of miles away from headquarters and one another, teams are more likely to focus on department goals, sometimes to the. It is popular and useful to diversify the products (iii) if the operation of a business organization is spread over a large geographical or territorial reason or area than such business organization an make departments on the basis of territory or geography. Product, customer, and geographic departmentalization can all be considered divisions product departmentalization is organizing work and workers into separate units responsible for producing particular products or services. Matrix departmentalization is a combination of functional departmentalization and task force departmentalization for improved harmonization of multiple components. 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.
Advantages of customer departmentalization it focused on customers who are ultimate suppliers of money better service to customer having different needs and. Geographic departmentalization is based on the different geographic areas or markets in which the company does business matrix departmentalization is a hybrid form that combines two or more forms of departmentalization, the most common being the product and functional forms. Types of departmentalization used by business product departmentalization - grouping activities by product line geographic departmentalization.
There are five different types of departmentalization namely: - functional, product, customer, geographic and then matrix functional departmentalization involves grouping work and workers into separate units, responsible for particular business functions or areas of expertise. Free essys, homework help, flashcards, research papers, book report, term papers, history, science, politics.
Departmentalization is the grouping of departments based on their work functions, product or service, customers, geographic territory or the process used to turn inputs into outputs departmentalization involves the dividing of an organization into different departments, which perform tasks according to the departments' specializations in the. Get an answer for 'what are the advantages and disadvantages of process departmentalization' and find homework help for other business questions at enotes. The process of departmentalization departmentalization by products it can group jobs on the based on geography for example. Departmentalization • functional - the grouping of activities by functions performed • product - the grouping of activities by product produced • customer - the grouping of activities by common customers • geographic - the grouping of activities by territory • process - the grouping of activities by work or customer flow.