5methods of departmentalization

The company can hire local employees to serve different customers from different geographical locations.

Five Types Of Departmentalization

The five types of departmentalization are: Divisional departmentalization - When the firm develops independent lines of business that operate as separate companies, all contributing to the corporation profitability, the design is called divisional departmentalization or M-FORM. Jobs may be grouped according to the type of customer served by the organization.

The different offices in different countries usually report to a regional headquarter. The employees are grouped into a team to take care of a specific process. For example, the regional headquarter for Asia is in Singapore, and the regional headquarter for Europe is in London.

It can be functional departmentalization with process departmentalization. A travel agency can have one team taking care of corporate customers, and the other team taking care of walk-in retail customers.

A high degree of specialization leads to the development of proficiency and professional competence, as well as it enables, and implies, the development of centralized control functions. Is there any advantage in placing specialized services like private secretaries or filing in [process departments]?

March and Simon, identified a correlation between the application of purpose departmentalization and the use of a diversification strategy: Owing to the complexity of tasks and the competitive environment in which organisations operate, they often use a combination of the above-mentioned methods in departmentalization.

Also, the high level of specialization is a barrier for the flexible reallocation of resources within the organization, i. Second, a clearer focus on the purpose itself—serving a specific customer or market—is enabled.

The assumption is that customers in each department have a common set of problems and needs that can best be met by specialists. Rich in every sense reveals my deep desire in enjoying life, and be rich in every possible ways. Customer departmentalization When a company has different customer bases, customer departmentalization allows better customer servicing.

On the other hand, the problem of aligning individual and organizational goals remains. The sales activities in an office supply firm can be broken down into three departments that serve retail, wholesale and government accounts.

In modern times, Gulick and Urwick were the first to introduce a theory of different departmentalization strategies, which were referred to as departmentalization by purpose and departmentalization by process. When taking a closer look at the three ways of departmentalization by purpose—product, customer, and location—we note that there are some specific advantages related to it.


In a small organization, where there is not a full-time job on some days for a secretary, it is better to have a central secretarial pool than to have a private secretary for each man.

Geographical departmentalization Geographical departmentalization is good for a multi-national company. Geographic departmentalization - Grouping activities on the basis of territory. Product departmentalization When a company has a wide range of products, product departmentalization is a logical choice.Departmentalization or departmentalization refers to the process of grouping activities into departments.

Departmentalization is the process of breaking down an enterprise into various departments. How jobs are grouped together is called departmentalization. Introduction to the types of departmentalization in a company There are basically five types of departmentalization in organizations.

The five types of departmentalization are: functional, product, customer, geographical and process. Functional departmentalization Most companies practice functional departmentalization. An example is the Production department, HR department, Accounts department.

Essay on 5methods of Departmentalization Essay Topic “What five methods have traditionally been used to departmentalize work and worker?

Give one advantage and one disadvantage of each. We will write a custom essay sample on Five methods of Departmentalization specifically for you for only $ $/page.

Order now For example every soldiers answer to his commanding officer, while the president is at the top of the chain as command-in-chief. 5methods of Departmentalization Essay Essay Topic “What five methods have traditionally been used to departmentalize work and worker? Give one advantage and one disadvantage of each.

Departmentalization is a method of dividing an organization into different departments, which performs certain tasks in accordance with the department's specialization. Organizations can.

5methods of departmentalization
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