It allows managers and workers to develop expertise related to an entire product line and have a broader set of experiences. It is easier for top managers to assess work-unit performance.

Task Significance. Degree to which a job is perceived to have a substantial impact on others inside or outside the organization.

Functional departmentalization involves organizing: work and workers into separate units responsible for particular business operations or areas of expertise. Which of the following is a disadvantage of functional departmentalization? It hinders cross-department coordination.

Which of the following is a difference between product departmentalization and matrix departmentalization? Unlike organizations with product departmentalization, organizations with matrix departmentalization use two or more forms of departmentalization together.

: the process of departmentalizing an enterprise for gaining efficiency and coordination : the grouping of tasks into departments and subdepartments and delegating of authority for accomplishment of the tasks.

Advantages Of Product Departmentation Product departmentation follow the principle of specialization in a product or services. It ensures better quality of the product. 2. Because of specialization it ensures optimum utilization of human and non human resources.

Advantages of Centralization. Even the cost of hiring experts and highly experienced personnel at each level is saved due to the centralized decision-making process. Better Command: The management can hold a better command over the subordinates and the subordinates also clearly know whom to follow.

Product departmentalization has the advantage of flexibility but the potential disadvantage that the departments may compete unintentionally.

LA Gear is an example of company that uses product departmentalization. Its structure is based on its varied product lines which include women’s footwear etc. Process departmentalization – Grouping activities on the basis of product or service or customer flow.

There are basically five types of departmentalization in organizations. The five types of departmentalization are: functional, product, customer, geographical and process.

In functional departmentalization, an organization is organized into departments based upon the respective functions each performs for the organization. For example, a manufacturing company may create a production department, sales and marketing department, an accounting department, and a human resources department.

Function departmentalization is the most common type. A functional structure makes efficient use of specialized resources and makes supervision easier. This is especially used in smaller companies and is divided into departments such as finance, marketing, or production.

Combined or Composite Form of Departmentation.

• Functional Departmentation:
• Product Wise Departmentation:
• Territorial or Geographical Departmentation:
• Customer Wise Departmentation:
• Process or Equipment Wise Departmentation:
• Combined or Composite Method of Departmentation:

Aims of Departmentation: (i) To group activities and personnel to make manageable units. (ii) To bring specialisation in the performance of various activities. (iii) To fix responsibility of the heads of various departments for the achievement of organization goals.

Human Resources departments

In case of departmentation by number, activities are grouped on the basis of their performance by certain number of persons. For instance, in the army, soldiers are grouped into squaders, battalions, companies, brigades and regiments based on the number prescribed for each unit.

Departmentation creates difficulties of communication among the various departments of the organisation and renders planning and control more difficult. 3. Departmentation increases the levels of management which is more expensive and it also increases the gap between the top management and the workers.

The main-techniques of effective coordination are as follows:

• Sound planning: Unity of purpose is the first essential condition of coordination.
• Simplified organization:
• Effective communication:
• Effective leadership and supervision:
• Chain of Command:
• Indoctrination and incentives:
• Liaison departments:
• General staff:

To departmentalize on a product basis means to establish each major product in a product line as an independent unit within the overall structure of the company. …

Types of Departmentation – Functional, Product, Geographical, Customer, Process or Equipment, Project or Matrix Departmentation, Team Structures and a Few Others. Departmentation is the way in which an organization groups its various activities. There are many ways in which organizations can be departmentalized.

Advantages of Controlling in the Organisation – Need Importance

• Control improves Goodwill.
• Control minimises Wastage.
• Control ensures optimum utilisation of resources.
• Control helps to fix responsibility.
• Control guides operations.
• Control motivates employees.
• Control minimises deviations.
• Control facilitates Delegation.

Advantages of functional departmentalization It provides a logical reflection of functions that maintains the power and prestige of major functions. Follows principle of occupational specialization. Simplifies training and supervisor of the subordinates. Furnishes means of tight control at the top.

Organizing a company in this way has inherent advantages and disadvantages.

• Advantage: Specialization.
• Advantage: Operational Speed.
• Advantage: Operational Clarity.
• Disadvantage: Segregation.
• Disadvantage: Weakening of Common Bonds.
• Disadvantage: Lack of Coordination.
• Disadvantage: Territorial Disputes.

Advantages of a functional structure

• specialisation – departments focus on one area of work.
• productivity – specialism means that staff are skilled in the tasks they do.
• accountability – there are clear lines of management.
• clarity – employees understand their own and others’ roles.

The organizational structure most common in business is composed of functional departments that are responsible for specific functions within the company. Employees are typically hired to work in one of four functional areas of business which usually include marketing, operations, human resources and finance.

There are five main functional areas of management viz., human resource, production office, finance and marketing; which have been discussed below.

A typical functional team will have several subordinates and a manager who has authority to manage internal operations and external relationships of a particular department or division of the organization. Accounting, marketing, finance and human resources are examples of functional work teams.

Identify the three major functional areas of business organizations and brieflydescribe how they interrelate. The three primary functions are operations, finance, and marketing.