Examples of departmentalization in the following topics:
- Outline the departmentalization options available to corporations from an organizational structure perspective
Differentiate between centralized and decentralized decision-making, and the resulting structural implications
Important characteristics of an organization's structure include span of control, departmentalization, centralization, and decentralization.
- Departmentalization is the basis by which an organization groups tasks together.
- Each of these structures provides different degrees of four common organizational elements: span of control, departmentalization, centralization, and decentralization.
- Departmentalization is the process of grouping individuals into departments and grouping departments into total organizations.
- Different approaches include:
Functional - departmentalization by common skills and work tasks
Divisional - departmentalization by common product, program, or geographical location
Matrix - a complex combination of functional and divisional
Team - departmentalization by teams of people brought together to accomplish specific tasks
Network - independent departments providing functions for a central core breaker
Centralization occurs when decision-making authority is located in the upper organizational levels.
- Functional departmentalization arguably allows for greater operational efficiency because employees with shared skills and knowledge are grouped together by function.
- A recent trend aimed at combating this disadvantage is the use of teams that cross traditional departmental lines.
- Recent trends that aim to combat these disadvantages include the use of teams that cross traditional departmental lines and the promotion of cross-functional communication.
- departmentalization (noun) The organization of something into groups according to function, geographic location, etc.
- Product and geographic divisional structures may be characterized as follows:
Product departmentalization: A divisional structure organized by product departmentalization means that the various activities related to the product or service are under the authority of one manager.
- Geographic departmentalization: Geographic departmentalization involves grouping activities based on geography, such as an Asia/Pacific or Latin American division.
- 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).
- Middle managers are accountable to top management for their department's function.
- They are accountable to the top-level management for their department's function, and they devote more time to organizational and directional functions than upper management.
- Both departmental managers and human resource managers must discuss and weigh the benefits and drawbacks of offering a job part-time, full-time, or on a contractual basis.
- HR professionals and departmental managers must be aware of the tradeoffs and opportunity costs of the models they chose to employ.
- These include creating a well-communicated and accurate mission statement; clearly defining strategic objectives; monitoring and evaluating each functional group; providing company-wide updates and communications from each department; and, wherever possible, promoting cross-departmental meetings and projects.
- Generally speaking, larger companies with a need for a great deal of cross-departmental communication benefit most from this model.
- It is predicated on the original department's ability to absorb the loss of that employee as well as the level of need in the new department.
- Upper management and departmental managers are not the only individuals involved in diversity management, however.
- McDonald's fast-food restaurants departmentalize varying elements of their operation to optimize efficiency.