Basis A key difference between functional and product departmentalization is the basic ways in how departments are set. The responsibility of total profit cannot be assigned to process departments. When a company uses functional departmentation, marketing specialists, for example, work together in the same department.
The technical problem is one shift may create problems for the entire shift. The assumption i c s that customers in each department have a common set of problems and needs that can best be met by specialists.
There may be difficulty in coordinating the activities of different departments. Most companies, including restaurants, are likely to use two or more types of departmentalization at the same time.
Time departmentalization In time departmentalization, departments are separated based on the division of their working time or job shifts.
Smaller organizations, assembly-line producers and well-established professional organizations such as colleges and hospitals usually have functional departments, partly due to tradition. Departmentalization based on a production process is depicted below.
Generally, hospitals, hotels, telecommunication and other public utility organization which work around the clock from departments on the basis of time shift such as day, evening and night shifts.
It creates the problem of effective control over production divisions by the top management. There is the possibility of duplication of physical facilities. The most common way of process departmentalization is the division of the firm into business functions, such as purchasing, manufacturing, sales, accounting, etc.
It facilitates delegation of authority and therefore, reduces the work burden of top manager. The activities are grouped on the basis of process. Advantages of Departmentalization by Customer It is suitable for the organization dealing with various types of customers.
The responsibility of total profit cannot be assigned to a shift department. The model consist of specific steps generally acknowledge to be essential to successful change management. It is more difficult to maintain central control over regional departments.
The manager who oversees servers, food runners, bartenders and hostesses will be in charge of the front of the house. Product departmentalization organizes employees based on product lines or set of services they work with.
It ensures effective utilization of specialized skills and equipments. This type of organizational structure is intended to combine the advantages of product and functional departmentation, but it has the potential disadvantage that employees must report to two separate supervisors, who may give contradictory instructions.
Because each process requires different skills, process departmentalization allows homogeneous activities to be grouc c cped together. It facilitates delegation of authority and therefore, reduces the work burden of top manager.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 by Product/Service This method of departmentalization is used specially by those manufacturing firms that involve in large scale and various lines of products or services.
A separate department is created for a single product or product line and all functions like production, finance, marketing, personnel etc.
of one. a hybrid organizational structure where two or more forms of departmentalization, most often product and functional, are used together two bosses One thing that distinguishes matrix departmentalization from other forms of departmentalization is. 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. A separate department is created for a single product or product line and all functions like production, finance, marketing, personnel etc. of one department are brought together under the concerned department.
Of all the issues facing a manager as he thinks about the form of his organization, one of the thorniest is the question of whether to group activities primarily by .Download