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Flashcards in Chapter 7 - Organising Deck (12)
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1
Q

Define Departmentalisation

A

Method of subdividing work and workers into separate organisational untits tthat take responsibility for completing particular tasks

2
Q

What are the 4 Types of Departmentalisation?

A
  1. Functional Departmentalisation
  2. Product Departmentalisation
  3. Geographic Regions Departmentalisation
  4. Customer Departmentalisation
3
Q

What is Functional Departmentalisation?

A
  • People with similar occupational specialities are put together in formal groups
  • Examples being the Accounting Department, Sales Department etc.
4
Q

Discuss the Advantages and Disadvantages of Functional Departmentalisation

A

Advantages

  • Work done by highly qualified specialists
  • Lowers costs by avoiding duplication
  • Less communication and coordination problems due to the similar working experience

Disadvantages

  • Cross-departmental coordination can be difficult
  • Can lead to slower decision making
  • Can lead to managers with narrowed experience
5
Q

What is Geographic Regions Departmentalisation?

A
  • Organises work and workers into separate unit responsible for doing business in particular geographic areas
  • Examples include companies with different outlets operating in a country
6
Q

Discuss the Advantages and Disadvantages of Geographic Regions Departmentalisation

A

Advantages

  • Help companies respond to demands of different markets with varying values and cultures
  • Reduces costs by location unique organisational resources closer to customers

Disadvantages

  • Duplication of resources
  • Cross-departmental coordination can be difficult as they are physically far apart from one another and managers have limited contact with one another
7
Q

What is Product Departmentalisation?

A
  • Organises work and workers into separate units responsible for producing particular products or services
  • Examples include brands like Samsung which produces home appliances, computers and other related products
8
Q

Discuss the Advantages and Disadvantages of Product Departmentalisation

A

Advantages

  • Allows managers and workers to specialise and become experts in a product line
  • Can develop a broad set of experiences and expertise related to the product line
  • Faster decision making
  • Fewer conflicts

Disadvantages

  • Duplication of resources
  • Higher costs related to duplication; each department must have their own sections for customer service, human resource, manufacturing etc.
  • Cross-department coordination can be difficult
9
Q

What is Customer Departmentalisation?

A
  • Organises work and workers into separate units responsible for particular kinds of customers
10
Q

Discuss the Advantages and Disadvantages of Customer Departmentalisation

A

Advantages

  • Focuses organisation on customer needs
  • Allows companies to specialise and adapt their products to suit target groups

Disadvantages

  • Duplication of resources
  • Cross-department coordination can be difficult
  • May lead to decisions that please customers but hurt the organisation
11
Q

What are Organisational Charts?

A
  • Box-and-lines illustration showing the formal lines of authority and the organisation’s official positions or work specifications
  • Important to show employees to inform them of their areas of responsibility
    • Facilitates more effective communication and coordination
  • Important to show outsiders to inform them of the organisation’s structure
    • Helps them to contact the right staff for queries
12
Q

What is the difference between Geographic Regions Departmentalisation and Customer Departmentalisation?

A

Geographic Regions Departmentalisation focus on convenience while Customer Departmentalisation focus on the different needs for individual types of customers