focusNode
Didn't know it?
click below
Knew it?
click below
Embed Code - If you would like this activity on your web page, copy the script below and paste it into
your web page.
Normal Size Small Size show me how
organizational structure | is the vertical and horizontal configuration of departments, authority, and jobs within a company. |
organizational structure is concerned with? | "who reports to whom"? and who does what?" and where is the work done"? |
organizational process | is the collection of activities that transform inputs into outputs that customers value |
organizational process ask? | "how do things get done"? for example to write computer software Microsoft uses basic internal and external feedback from customers through all forms of communication |
an example of an organizational process? | Microsoft gets the feedback then uses that info makes corrections then select customers again for feedback used to make improvements then finally sells it. |
departmentalization | is a method of subdividing work and workers into separate organizational units that take responsibility for particular tasks. |
what are the methods of departmentalization? how many are there? | Functional, Product, customer, geographic, matrix |
what is the most common organizational structure? | functional departmentalization. Companies tend to use this when they are first starting out. |
functional departmentalization | organizes work and workers into separate into separate units responsible for particular business functions or areas of expertise. |
what are the advantages of functional departmentalization? | 1. it allows work to be done by highly qualified specialist. 2 . it lowers cost by reducing duplication. 3. communication and coordination are less problematic for departmental managers. |
what are the disadvantages of functional departmentalization? | cross - department and cross coordination can be difficult. managers and employees are often more interested in doing whats right for their function and not for the whole organization? |
what are the advantages of functional departmentalization? 2 | leads to slower decision making and producers workers and mangers with narrow experience and expertise |
Product departmentaliation. | organizes work and workers into separate units responsible for producing particular products or services. |
customer departmentalization | organizes work and workers into separate units responsible for particular kinds of customers |
customer departmentalization advantages | focuses on the organization on customer needs rather than on products or business functions. its helps companies to specialize and adapt their products and services to customer needs and problems |
customer departmentalization - disadvantages | is that like product departmentalization, it leads to duplication of resources. also it may lead workers to make decisions that please customers but hurts the business |
geographic departmentalization | organizes work and workers into separate units responsible for doing business in particular geographic areas. |
the primary advantage of geographic departmentalization | is that it helps companies respond to the demands of different markets |
geographic departmentalization - disadvantage | is that it can lead to duplication of resources for example while it may be necessary to adapt products and marketing , it is difficult to coordinate departments that are literally thousands of miles from other and whose managers has very little contact |
matrix departmentalization | is a hybrid structure in which two or more forms of departmentalization are used together |
the most common form of matrix departmentalization | combines the product and functional forms of departmentalization are used together. |
Departmentation by product and services has both advantages and disadvantages. These merits and demerits are clearly described below.
Advantages Of Product Departmentation
Major benefits of departmentation by product and services are as follows:
1. 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.
3. Large manufacturing firms can be benefited from product departmentation.
4. Departmentation by product and service helps in evaluating the performance of each department. This helps to control organization easily.
5. Top level manager has enough time for planning and decision making because all departments are handled by departmental managers.
6. Production departmentation is flexible in nature. It is easy to add new product line if needed.
7. Product departmentation helps to improve skill and talent of managers.
Disadvantages Of Product Departmentation
Major drawbacks of departmentation by products and services are as follows:
1. There is high chance of conflict between different departments.
2. Due to low demand, resources may not be fully utilized.
3. Top level management has to face difficulty to control production division.
4. Departmental managers and supervisors may ignore overall organizational objectives because they focus only on their department.
5. It is very costly and not suitable for small and medium sized firms