PROCESS

Date: 2015-10-07; view: 527.

DIVISIONAL STRUCTURE

A second organizational structural alternative is divisional,if it groups peo­ple who do not work in the same product or process, serve similar customers, and/or are located in the same area or geographical region. Divisional struc­tures attempt to avoid problems common to functional structure and are pop­ular among organizations with diverse operations that extend across many products or services, geographical areas, customers, or work processes.

Departmentalization can also take place by process.This type of depart­mentalization, which often exists in manufacturing companies, is illustrated in Figure 11-2.

PRODUCT

Whenever specialized knowledge of certain products or services is needed, departmentalization by productmay be best. This usually occurs in large diversified companies. This form of departmentalization is illustrated in Figure 11-3.

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