Desiginging adaptive organizations - departmentalization

6 important questions on Desiginging adaptive organizations - departmentalization

What is an organizational structure?

Vertical and horizontal configuration of departments, authority, and jobs within a company.

What is functional departementalization?

Dividing work and workers into separate units responsible for particular business functions or areas of expertise.

What is product departementalization?

Separate units for producing particular products or services.

- Allows managers and workers to specialize in one area of expertise
- Decision making should be faster
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What is customer departementalization?

Organizing work and workers into separate units responsible for particular kind of customers

- Focuses organization on customer needs rather than business functions.
- Allows organizations to specialize and adapt their products and services to the needs and problems of customers.

What is geographic departementalization?

Separate units for doing business in particular geographic groups.
- Helps companies respond to demands in different markets
- Can reduce costs by locating unique organizational resources closer to customers.

What is matrix departementalization?

A hybrid organizational structure in which two or more forms of compartmentalization, most often product and functional, are used together.

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