Departmentalization refers to grouping activities into departments based on common functions, products, customers, geography, processes, or divisions. One popular type is functional departmentalization, which involves grouping activities according to the function performed, such as human resources, IT, accounting, manufacturing, logistics, and engineering, in order to facilitate specialization and coordination across shared skills and knowledge.
Departmentalization refers to grouping activities into departments based on common functions, products, customers, geography, processes, or divisions. One popular type is functional departmentalization, which involves grouping activities according to the function performed, such as human resources, IT, accounting, manufacturing, logistics, and engineering, in order to facilitate specialization and coordination across shared skills and knowledge.
Departmentalization refers to grouping activities into departments based on common functions, products, customers, geography, processes, or divisions. One popular type is functional departmentalization, which involves grouping activities according to the function performed, such as human resources, IT, accounting, manufacturing, logistics, and engineering, in order to facilitate specialization and coordination across shared skills and knowledge.
Departmentalization refers to grouping activities into departments based on common functions, products, customers, geography, processes, or divisions. One popular type is functional departmentalization, which involves grouping activities according to the function performed, such as human resources, IT, accounting, manufacturing, logistics, and engineering, in order to facilitate specialization and coordination across shared skills and knowledge.
Download as DOCX, PDF, TXT or read online from Scribd
Download as docx, pdf, or txt
You are on page 1of 1
What is departmentalization?
Departmentalization refers to the process of grouping activities into departments and it is
the basis for grouping position into departments and departments into the total organization. Why is it required? Division of labor creates specialists who need coordination. This coordination is facilitated by grouping specialists together in departments.
Popular Types of Departmentalization Functional departmentalization Product departmentalization Customer departmentalization Geographic departmentalization Process departmentalization Divisional departmentalization
Discuss any one form of departmentalization.
Functional departmentalization:
Grouping activities by functions performed. Activities can be grouped according to function (work being done) to pursue economies of scale by placing employees with shared skills and knowledge into departments for example human resources, IT, accounting, manufacturing, logistics, and engineering. Functional departmentalization can be used in all types of organizations.