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.
Mixed departmentalization is an organizational structure that combines different forms of departmentalization, such as functional, product, geographical, or customer-based. This approach allows a company to leverage the strengths of each method to enhance efficiency and responsiveness. For example, a business might use functional departmentalization for core operations while also organizing teams by product lines to better focus on specific market needs. This flexibility can lead to improved collaboration and innovation across departments.
Place departmentalization is an organizational structure that groups employees and resources based on geographical locations or regions. This approach allows businesses to tailor their strategies and operations to meet the specific needs of different markets or areas, enhancing responsiveness and customer service. By focusing on distinct locations, companies can better align their resources and personnel with local demands and preferences. This type of departmentalization is commonly used by multinational corporations or businesses with multiple branches in various regions.
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.