Product and geographic departmentalization

Activities can be grouped according to function work being done to pursue economies of scale by placing employees with shared skills and knowledge into departments for example human resources, IT, accounting, manufacturing, logistics, and engineering. Functional departmentalization can be used in all types of organizations. Group activities in accordance with the function of an enterprise Product departmentalization - Grouping activities by product line.

Product and geographic departmentalization

Vadim Rybakov Organizing is the managerial function of arranging people and resources to work toward a goal. The purposes of organizing include but are not limited to determining the tasks to be performed in order to achieve objectives, dividing tasks into specific jobs, grouping jobs into departments, specifying reporting and authority relationships, delegating the authority necessary for task accomplishment, and allocating and deploying resources in a coordinated fashion.

Henri Fayol first identified organizing as a function of management in his classic monograph General and Industrial Administration. This book was published in France in but was not translated into English until the s, and it was not published in the United States until Early "principles of management" texts published in the s generally were organized around management functions, including organizing, as are most basic management texts in the late s.

Organizing plays a central role in the management process. Given a clear mission, core values, objectives, and strategy, the role of organizing is to begin the process of implementation by clarifying jobs and working relationships.

It identifies who is to do what, who is in charge of whom, and how different people and parts of the organization relate to and work with one another. All of this, of course, can be done in different ways. The strategic leadership challenge is to choose the best organizational form to fit the strategy and other situational demands.

Collectively, these decisions are often called organizational design. More than two centuries ago Adam Smith concluded that division of labor contributes to increased productivity and efficiency by allowing workers to specialize and become proficient at a specific task.

This principle, coupled with technological advances, made possible the tremendous productivity of industrial companies during most of the twentieth century.

By the s most manufacturing jobs in developed nations were highly specialized, with workers performing specific, standardized, and repetitive tasks.

Product and geographic departmentalization

This resulted in reduced staffing, training, and compensation costs, since highly skilled workers were often not necessary. In addition, since employees were doing the same task repetitively, they tended to become very good at it. Despite the improvements in productivity made possible by the division of labor, managers must be aware of the negative aspects of specialization: Such problems have led to programs geared toward job enlargement and job enrichment.

After the work to be completed is organized into identifiable jobs through a process of dividing labor, jobs are then combined into logical sections or departments. Doing so allows for effective coordination of effort. There are many ways to departmentalize, each of which has important advantages and disadvantages.

One of the most common forms is functional departmentalization, which involves grouping similar jobs into a common department, such as accounting, sales, human resources, and engineering. Other ways of departmentalizing include organizing by customer and by geographic territory.

In practice, most large companies use a hybrid form of departmentalization, which means they combine one or more of the above methods to form their organizational structure.

The chain of command is a line of authority extending from the top to the bottom of the organizational structure. Another principle of organizing related to the chain of command is called the unity of command, which states that a person should have only one superior to whom he or she must report.Published: Mon, 5 Dec Every company has its own organization structure.

Organizational structure can be described as the systematical process of delegating power and authority among the employers. Departmentalization.

What Are Types of Departmentalization That Would Be Used in a Restaurant? |

Departmentalization refers to how the organizational structure groups the company's functions, offices and teams.

Those individual groups are typically referred to as departments. 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.

Departmentalization is an aspect of organizational design where a business divides its staff into smaller units based on tasks within the company.

Product and geographic departmentalization

Most companies, including restaurants, are likely. The business environment is a marketing term and refers to factors and forces that affect a firm's ability to build and maintain successful customer three levels of the environment are: Micro (internal) environment – small forces within the company that affect its ability to serve its customers.

In product departmentalization, an organization is divided by product lines. It creates a department for each product and that department controls all activities related to the product including.

Departmentalization - Wikipedia