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- Departmentalization by simple numbers
It is achieved by tolling off undifferentiated persons who are to perform certain duties at the direction of a manager. It was common among tribes, clans, armies, and in agriculture (for example tea pickers) but its use is slowly declining. The number of people is the sole factor that is considered.
- Departmentalization by time
It is achieved by grouping of activities on the basis of time/period/schedule. The shifts are common in many enterprises where, for economic or technological reasons, the normal workday will not satisfy needs. This basis is commonly used in hospitals, fire department, the police, and manufacturing plants that run for 24 hours.
- Departmentalization by function
This format organizes firm by the functions to be performed. The functions reflect the nature of the business. The advantage of this type of grouping is obtaining efficiencies from consolidating similar specialties and people with common skills, knowledge and orientations together in common units. E.g. production, marketing, finance, and human resources.
- Departmentalization by product
It assembles all functions needed to make and market a particular product are placed under one executive. For instance, major department stores are structured around product groups such as home accessories, appliances, women’s clothing, men’s clothing and children’s clothing.
- Departmentalization by geographical regions
It groups jobs on the basis of territory or geography. For example, Telkom Kenya and KPLC have departmentalized by regions such as Nairobi, Coast, Central, North Rift, South Rift and Western.
- Departmentalization by process
It groups jobs on the basis of product or customer flow. Each process requires particular skills and offers a basis for homogeneous categorizing of work activities. A patient preparing for an operation would first engage in preliminary diagnostic tests, then go through the admitting process, undergo a procedure in surgery, receive post-operative care, be discharged and perhaps receive out-patient attention. These services are each administered by different departments.
- Departmentalization by customer
It groups jobs on the basis of a common set of needs or problems of specific customers. For instance, a plumbing firm may group its work according to whether it is serving private sector, public sector, government, or not-for-profit organizations. A current departmentalization trend is to structure work according to customer, using cross-functional teams. This group is chosen from different functions to work together across various departments to interdependently create new products or services. For example, a cross-
functional team consisting of managers from accounting, finance, and marketing is created to prepare a technology plan.
Titany answered the question on September 20, 2021 at 09:28
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