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Terms in this set [21]
departmentalization
Subdividing work and workers into separate organizational units responsible for completing particular tasks
organizational structure
the vertical and horizontal configuration of departments, authority, and jobs within a company
organizational process
the collection of activities that transforms inputs into outputs that customers value. "How things get done".
functional departmentalization
organizing work and workers into separate units responsible for particular business functions or areas of expertise
product departmentalization
organizing work and workers into separate units responsible for producing particular products or services
customer departmentalization
organizing work and workers into separate units responsible for particular kinds of customers
geographic departmentalization
organizing work and workers into separate units responsible for doing business in particular geographic areas
matrix departmentalization
a hybrid organizational structure in which two or more forms of departmentalization, most often product and functional, are used together
simple matrix
a form of matrix departmentalization in which managers in different parts of the matrix negotiate conflicts and resources
complex matrix
a form of matrix departmentalization in which managers in different parts of the matrix report to matrix managers, who help them sort out conflicts and problems
disadvantages of functional departmentalization
doing what's right for the function rather than the organization. Example: marketing vs. manufacturing
advantages of product departmentalization
allows specialization in area of expertise.
easier for top managers to assess performance.
fewer conflicts; decision making is faster.
disadvantages of product departmentalization
duplication results in higher costs.
challenge of coordinating across the different product departments.
advantages of customer departmentalization
focuses on customer needs.
disadvantages of customer departmentalization
leads to duplication of resources.
advantages of geographic departmentalization
helps companies respond to the demands of different markets.
reduce costs by locating unique organizational resources closer to customers.
disadvantages of geographic departmentalization
lead to duplication of resources.
most common matrix
functional plus product
what distinguishes matrix?
1. employees report to two bosses
2. much more cross functional interaction
3. significant coordination between managers
advantages of matrix departmentalization
manage in an efficient manner large, complex tasks
disadvantages of matrix departmentalization
high level of coordination required to manage the complexity
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