Departmentalisation is the process of forming employees into groups to accomplish specfic organizational goals . Example:departments can be organized according to the function workers perform. NB:as accounting and human resource department.
with examples discuss the different types of departmentalisation
Tension occurs:When forces for coordination are stronger than the forces for departmentalisation, functional departmentalisation tend to work best.When forces for coordination and departmentalisation are equal, a customer form of departmentalisation works best.When forces for departmentalisation are stronger than forces for coordination, place or product departmentalisation is best
Departmentalisation of overhead means allocation of overhead cost base on predertmined rate in case of absorption method and based in activities in case of activity based costing.
Yes, for example if the sub units have conflicting goals and strategies.
centralised is a high degree of authority at the top of the hierarchy and decentralised is a high degree of delegated authority
Departmentalization is vital in the Zambian civil service. This is the only way that the government would be able to review performance of civil servants.
A traditional organisation structure focuses on a process called departmentalisation. It is where a structure places people into groups with specific tasks or jobs in which they are qualified to do or have experience in or specialise in that particular area. They are then linked, both within the group and within the organisation, in three main ways structured formats: functional structures, divisional structures and matrix structures.
Simple Structure: These are structures with low degree of departmentalisation and a wide span of control. The authority is largely centralised in a single person with very little formalisation. It is also called 'flat structure'. It usually has only two or three vertical levels, a flexible set of employees, and generally one person in whom the power of decision-making is invested. This simple structure is most widely practiced in small business settings where manager and owner happens to be the same person. Its advantage lies in its simplicity. This makes it responsive, fast, accountable and easy to maintain. However, it becomes grossly inadequate as and when the organisation grows in size. Such a simple structure is becoming popular becauseof its flexibility, responsiveness and high degree of adaptability to change.