1 Functional Departmentalization PDF

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1 Functional Departmentalization: The most common organizational structure is functional or departmental. In this structure, all employees of a certain function are united into one department. Examples of such separate departments are Sales, Accounting, Marketing, Finance, Research and Manufacturing. Advantages: A significant advantage of a functional structure is the focus and focus of the group of professionals on their specific skills. Concentrating the entire marketing staff of the company in one department makes it easier for them to exchange ideas in order to broaden their knowledge and increase efficiency. Disadvantages: A disadvantage of the departmental structure is that communication between employees in different departments is limited. While the leaders of each department can talk to each other, employees are more isolated from each other and obviously do not have open channels of communication.

2. Divisional Structures: Divisions organize the company's operations by geographic region, product, market, or service group. For example, a company might have one site for US sales and another for European sales. Or one department for managing blue widgets and another for working with green gadgets. Benefit: Accountability is made clear through structural units. Everyone works separately and is responsible for managing their own activities. The results, good or bad, are easy to determine. Cons: Splits are more expensive to create and operate. When a corporation has multiple departments, the total number of employees is likely to be higher than in an organization with functional departments. The same functions, when distributed among several departments, will not be as productive and efficient as when they are concentrated in one department.

3. Matrix: Companies that develop and introduce new products or initiate various marketing campaigns will create matrix structures for project management. The organizational matrix structure tries to use functional organizations, combining specialized skills into a design grid. Matrix Organizations aim to facilitate collaboration between functional, discrete departments so that such activities can be managed more effectively to achieve a common goal.

Benefit: When a matrix organization is formed, it has a clear purpose. This could be a new product launch or the development of a new marketing campaign for a different demographic. The matrix can be solved after completing its mission. Disadvantages: Matrix structures are more complex. The lines of power run vertically and horizontally when employees work for two bosses. Employees can often receive conflicting directions from project managers and functional managers, creating stress and confusion when prioritizing....