Business Essentials (12th Edition) (What's New in Intro to Business)
Business Essentials (12th Edition) (What's New in Intro to Business)
12th Edition
ISBN: 9780134728391
Author: Ronald J. Ebert, Ricky W. Griffin
Publisher: PEARSON
Question
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Chapter 6, Problem 6.1QR
Summary Introduction

To describe: The basic forms of departmentalization with examples.

Introduction:

Departmentalization:

It involves the segregation of the organization into different separate departments. Each department will perform its tasks according to its specializations.

Expert Solution & Answer
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Explanation of Solution

Basic forms of departmentalization:

  • Functional departmentalization based on different functions and activities. An example is the maintenance department.
  • Product departmentalization according to the product or the services being offered. An example is a department that deals with household products.
  • Process departmentalization according to the kind of process that is involved. An example is a Milling department in a manufacturing firm.
  • Customer departmentalization based on the different customer groups. An example is dealing with foreign customers in a bank.
  • Geographic departmentalization according to the geographical area where the business is operating in. An example is a separate department for handling Asian customers in an immigration department in an airport.

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