Definition of departmentalization
the organization of something into departments according to function, geographic location etc.
Examples of departmentalization in the following topics:
- Departmentalization is the process of grouping individuals into departments and 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 combination of Functional and Divisional Team - for accomplishing specific tasks Network - independent departments providing functions for a central core breaker When the decision-making authority is centered near the top organization levels, this is known as centralization.
- Other common elements of an organization include span of control, departmentalization, centralization and decentralization.
- A divisional structure organized by product departmentalization means that the various activities related to the product or the service are placed under the authority of one manager.
- Geographic departmentalization involves grouping activities based on geography, such as Asia/Pacific or Latin American divisions.
- DiscussionSome argue that functional departmentalization allows for greater operational efficiencies in that employees with shared skills and knowledge are grouped together by functions performed.