Diagram Credits © Moon Rodriguez. Automation will come nautrally to this scheme. Here, there are working shifts like morning shift, evening shift, night shift, etc. The administrative units so created may be designated as departments, divisions, units, branches, sections, etc. At the same time, the need for developing and maintaining extensive external coordination mechanisms is reduced. In addition, in this case, we would also need to consider departmental goals.
It is obviously not possible for one functional manager to manage efficiently such widely spread activities. For example, the salespeople can talk to the design and manufacturing specialists in their own department to address customer satisfaction issues rather than having to go outside the department. Austere points out that disadvantages of geographic departmentalization include a duplication of human, structural, and production resources and services, which negatively affect a company's operational performance. In the image, five managerial groups, represent five different functional areas within a firm i. Factors to be Considered in Departmentation : A suitable basis of departmentation is one which facilitates the performance of organisational functions efficiently and effectively so that the objectives of the organisation are achieved. Also because departmental stores carry everything many people will go to them causing traffic, parking dilemmas, and long waiting lines. This section is additional detail and description of five methods has been used traditionally to departmentalization.
The advantage is focused on customer need rather than on products or business function. Specially, this method is used in large scale manufacturing concerns such as textile, cement, chemical, medicine etc. About the Author Tracey Sandilands has written professionally since 1990, covering business, home ownership and pets. Building factories and machines to mass produce is expensive another disadvantage in itself. All of 3M Crops products operate under different divisions Griffin, 2013.
The assumption i c s that customers in each department have a common set of problems and needs that can best be met by specialists. For instance, department of a textile industry may be formed into ginning, spinning, weaving, dyeing and finishing department. The organisation chart of departmentation by process or equipment in the manufacturing department of a textile industry has been shown in Fig. It also provides a basis on which the top managers can co-ordinate and control the activities of the departmental units. This type of departmentalization can also apply to retail stores.
The disadvantage is required more human capital and the control cannot exercise effectively. The activities of each process are assigned to a departmental head who is responsible for all the functions of concerned department. It enables the personnel to become experts. Such myopia makes it difficult for managers to marshal subordinates for the company's vision. It cannot be used where manufacturing activity does not involve distinct processes. It is difficult to coordinate the activities of different levels. For example, an automobile manufacturer might organize around the brands in its product line, while a clothing manufacturer might organize around women's clothing, men's clothing and children's clothing.
The Pink Pursuit lip gloss supports breast cancer research, and the Rose and Shine lipstick supports women's shelters. Originally developed in aerospace companies, the idea of the matrix spread rapidly to such diverse companies as , , and Shell Oil and is used in government agencies as well. The maintenance of plant can be done in better way and manpower can be utilised effectively. Provide an example of functional departmentalization at your University and using the definitions in your textbook explain why it is suitable example. Tall Organisation creates many levels of management. Similarly, a business organization may be divided into industrial product buyers and consumers product buyers.
When you have a huge job to be done, just like a big commercial organization has, it becomes difficult to manage each and everything by your own because you have to keep records of so many things. Because the challenges and opportunities that each department face are mysterious to the other functional areas, misunderstandings and mistrust can occur. Generally, hospitals, hotels, telecommunication and other public utility organization which work around the clock from departments on the basis of time shift such as day, evening and night shifts. In such departmentalization, the local customers are served by the divisional manager while the plans and policies are formulated at the head offices. Slow adaptation to changes in environment.
This means that companies featuring functional departmentalization cannot adapt quickly and aren't as flexible as other structural setups. Matrix organizations are not limited to the combination of function and purpose. Geographic Departmentalization In geographic departmentalization, an organization is organized along geographic lines. For example, think about an aerospace engineering firm and the different needs of their consumer, business, and government clients. Key areas should be given special attention.