Ø Deparmtentalisation refers to how work activities are grouped together.
Ø Deparmtentalisation is the logical grouping of work activities to create divisions, branches, units and sections in a company.
ü Reflection
functions
ü Based on
specialization
ü Individuals speak
the same language
ü Minimize
duplication
ü Training narrow
and simplified
ü Tight
Organisational control
x Over
specializations
x Manager limited
to functional area
x Weak coordination
between departments
x Employee identify
with department vs. culture of firm
x CEO overburdened
x Manager fails to
develop focus on customer, products or markets.
ü Tailor to
particular region i.e. British, Japanese
ü Excellent
training ground for managers as assign different regions
ü Excellent basis
for career management move up to headquarters.
ü Work units highly
responsive to specialized customer needs.
x Danger of duplication
of effort
x Hire general
managers capable of handling several functions.
ü Adaptable and
flexibility in meeting needs of management
ü External Change
detected readily & understood
ü Employee gain
deep understanding of product and market
ü Separate business
units (profit centers)
ü Measures easy to
create and judge performance of various product divisions are less complicated.
ü Design shifts
some burden for general management from corporate executive to division
executives.
x Danger of
duplication of effort
x Hire general
managers capable of handling each division.
x ‘Joint ventures’
conflicts arise due to sharing resources.
ü Combines
strengths of product and functional design.
ü Emphasis on
market change with management and technical expertise.
ü Develop manager
with technical product and project knowledge who can communicate effectively
with functional departments.
ü Self-contained
department can devote undivided attention to needs of project.
ü Organization can focus
on specific products and development without creating permanent units.
x Employee not know
who ‘real boss’ is.
x Requires
excellent planning & resource allocation – functional work proceeds and
projects do not ‘starve’.
x To excessive
overhead costs – project over hire technical and support staff.