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a functional organisation is departmentalized on basis of different functions that are carried in running the organisation e.g. Sales, Marketing, Finance, Customer Assistance,

A product organisation is departmentalized on basis of different product it produces e.g. an organisation like unilever can have a toothpaste department, Washing Powder Department etc.

Same goes with the Brand departmentalization like Vaseline and Ponds.

Some functional departmentalization is usually retained in Product/Brand Departmentalization such as central manufacturing department, Customer Assistance department etc.

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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


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What is product departmentalization?

it is basically the act of focusing on the production of different products by an organisation

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