FUNCTIONAL STRUCTURE

Date: 2015-10-07; view: 908.

DEPARTMENTALIZATION

Grouping people and jobs into manageable work units to achieve the objec­tives of the enterprise in the most efficient and effective manner is depart­mentalization.A variety of means can be utilized for this purpose. The primary forms of departmentalization are by function, process, product, market, division, customer, geographic area, and even matrix (also called project organization). In many organizations, a combination of these forms is used.

Perhaps the oldest and most common method of grouping related functions is by specialized function,such as marketing, finance, and production (or operations). Sometimes this form of departmentalization may create prob­lems if individuals with specialized functions become more concerned with their own specialized area than with the overall business. An example of departmentalization by function appears in Figure 11-1.