1. Compare functional and product departmentalization in terms of relative efficiency, production, satisfaction, flexibility, quality, competitiveness, and development. Consider particularly the possibility that one basis may be superior in achieving one aspect of effectiveness, yet inferior in achieving another.
Functional departmentalization has organizational and production efficiency and product departments should have overall higher satisfaction and adaptability within its department. Departmentalization “Process in which an organization is structurally divided by combining jobs in departments according to some shared characteristic or basis” (Gibson, Ivancevich & Konopaske, 2011, p. 401). Functional departmentalization organizes employees based on function or skill. Some examples of there are employees involved in making the company’s products work in the manufacturing department and employees involved in designing new products work in the research and development department. All these different departments vary from company to company but are always designed in a way that employees work with others who have the same or similar skills or functions. Product departmentalization “This form of organization allows personnel to develop total expertise in researching, manufacturing, and distributing a product line. Concentrating authority, responsibility, and accountability in a specific product department allows top management to coordinate actions” (Gibson, Ivancevich & Konopaske, 2011, p. 403). Product departmentalization organizes employees based on product lines or set of services they work with. Each product line has a department of its own, and each department has specialists in all of the functions needed to produce and sell that product such as marketing, manufacturing, accounting, and human resources. The department in this type of company operate autonomously from each other, for example the salespeople can talk to the design and manufacturing...
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