Dilemma that manager faces while selecting different types of departmentalization’s
Definition: Departmentalization refers to dividing an organization into different departments, which performs task according to their specialization in an organization.
To be more precise, departmentalization means subdividing the workers, work into subdivisions according to their specialization, thus allowing better control of top management which enhances the performance of the project.
The major forms of departmentalization are: 1) functional; 2) product; 3) customer; 4) geographic; and 5) matrix.
Product departmentalization divides workers and their work into different departments for developing and research on a particular product to enhance it for a consumer.
Example: Tata Company is global and diversified into many different product such as logistics, mining, power, financial services, hospitality, drugs etc.
Examples: a library containing different type of department for different subjects like hospitality, project management, surgical etc. thus preventing from creating chaos.
Pros and Cons of Product Departmentalization
1. It allows managers and workers to concentrate in a particular area thus improving the customer services.
Example: Technical people specialized in their particular fields.
2. There will be managers and workers with lots of experience in their respected area, which will benefit the company and the project they are working on.
Example: Research and Development of any organization needs employees with lots of experience
3. It will be very easy for the top management to control the departments and expect work before deadline.
Example: organizational structure should be in a hierarchy
1. There will be very low or no coordination in-between the different product department thus leading to repetition of same product, which may waste the time, man power as well as money.