Definition:
The process of dividing an organization into smaller units is known as Departmentalization. It is based on exact activities or duties. This helps the well-organized control of different works in the firm. It leads to the best coordination, communication, performance, etc. So, we should learn the forms of departmentalization in detail. The ways of using it, and examples of how it is used in different businesses.
Furthermore, using this strategy, communication in a company may be increased. This process can be completed in a variety of ways and take many different shapes. Then, we shall study its varieties, approaches, and case studies in this article.
Types of Departmentalization:
- Functional Departmentalization
- Product Departmentalization
- Customer Departmentalization
- Geographic Departmentalization
- Process Departmentalization
Functional:
This is the most classic method of grouping employees according to their abilities. So, this type can handle each employee based on his or her skills. Everyone in the company works with ease. Under this shape, departments are established. These departments are based on operations, marketing, finance, and human resources. As a result, the benefit of this type is that one person with multiple areas of expertise can work in multiple departments.
Product:
Employee classifies into departments according to the goods or services they offer under this sort of grouping. For instance, a garment manufacturer may have distinct divisions for men’s, women’s, and children’s dresses.
Customer:
This method of classification is led by client demands. To serve customer groups, such as corporate clients or individual consumers. These departments are responsible under this framework. Hence, in this type, customers get the services they want.
Geographic:
Classification of employees in this way according to their regions. Such as multinational corporations use this structure in several nations.
Process:
This type involves employees that are working on a specific process. Every organization has many departments like this. For instance, a creator may have clear divisions for design, production, and quality control.
Methods of Departmentalization:
We learn the different types of Departmentalization and their criteria too. Now let`s have look at its methods. Because this is an important factor in every organization. So, here are some methods that will help an organization keep an effective reputation.
- Horizontal departmentalization
- Vertical Departmentalization
- Matrix Departmentalization
Horizontal Departmentalization:
According to this method, workers classify into groups according to their rank. When there are several layers of administration in large companies, this method is best for working.
Vertical Departmentalization:
In this structure, the staff is classified according to their jobs. There are fewer layers of commands in smaller firms. Hence, this method often matters there.
Matrix Departmentalization:
Employees organize using this method according to the tasks on which they are working. As well as the job and duties they are doing. It can help to complete different tasks at a time. Because this is a task-vice system. In project-based businesses, where staff works on many tasks at once, this method is very helpful.
Examples of Departmentalization:
McDonald’s:
McDonald`s is a restaurant. It groups workers according to their job. Such as marketing, finance, and operations. This uses functional departmentalization.
Apple:
Apple is an electronic brand. It works all over the world. This group’s people depend on the products they sell. Such as the iPhone, iPad, and Mac. This is using product departmentalization.
Amazon:
Amazon is an e-commerce store. They provide online selling or buying platform to the people. This platform works virtually. Workers at Amazon are divided into groups depending on the demands of many customers. Such as business and private consumers.
Coca-Cola:
Coca-Cola is a soft drink company. It supplies its drinks anywhere in the world. This uses geographic departmentalization. It group employees based on the regions. They work in, such as North America, Europe, and Asia.
Ford:
Ford is a motor company. It groups people according to their specific processes. They are involved in, such as design, production, and quality control. This is using process departmentalization.
Main Goals and Objectives of Departmentalization:
The step of departmentalization divides an organization into possible sections. It is based on similar tasks, clients, or geographical areas. The following are the main goals.
Organizational structure:
It helps in gaining expertise in a variety of organizational activities. Each department may focus on an exact task. It also, allows them to sharpen their knowledge in that field. As a result, all jobs are completed with efficiency and correctness.
Coordination:
Departmentalization improves coordination in many departments of an organization. It is simpler to manage and coordinate operations in each department. When an organization is classified into units with similar tasks. This makes it easier to communicate. Also, work as a team, all of which can increase performance.
Accountability:
Establishing a clear range of accountability in a company is another comfort of departmentalization. It is also simpler to find who is responsible for what? Because each department has its own set of goals. This raises the success of the company as a whole. And also secure that each department is responsible for its performance.
Flexibility:
Departmentalization makes it possible for a business to react quickly. Such as changing client requirements, market conditions, and technology advancements. Therefore, specialized departments enable businesses to quickly change to advance. Without affecting how they operate as a whole.
Decision-making:
Decision-making is helpful in grouping departments. It may be made efficiently since each department has skills. Better judgments that are more in line with the aims and goals of the company may result from this.
Conclusion
In conclusion, it is an essential organizational method that increases productivity and good communication in a company. Depending on the size of the organization, multiple grouping techniques can work. Such as functional, product, customer, geographic, and process. Organizations may choose an excellent dividing strategy for their purposes. It is due to understanding the many methods, including horizontal, vertical, and matrix. Therefore, organizations may efficiently complete their goals and objectives by doing in using effective methods.