geographic departmentalization: advantages and disadvantagesgeographic departmentalization: advantages and disadvantages

Strategic Business Unit (SBU) Structure: Divisional structure may not be suitable when increase in number, size, and diversity of divisions in an organisation, and it becomes difficult for strategists to control and evaluate divisional operations. Multinational corporations utilize geographic departmentalization to establish offices grouped by location. The advantages of departmentalization are depicted in the image below. 1. The following Patterns may be used for grouping activities into departments: 1. Disadvantages of Customer Departmentalization. Face-to-face communication with local interests. It's the most common type of organizational structure--the chain of command goes from the top (e.g., the CEO or manager) down (e.g., entry-level and low-level employees) and each employee has a supervisor. Product wise Departmentation. What are some advantages and disadvantages of departmentalization? Instead of requiring individuals to have high levels of general knowledge in all areas, departmentalization allows teams or individuals to specialize in specific fields. Better service to customer having different needs and tastes . Advantages and Disadvantages This is less likely to be an issue for a smaller organization, because the different departments may be in frequent contact already. • Europe Group. Better customer service. This method allows the company to fulfill the . Specialization. For example, an employee working in marketing department can also work as the event planner in functional structure of the departmentalization. In some situations, customers sensitive and responsive to the unique needs may also be bothered by representatives of . Disadvantage: Segregation. Advantage: Specialization. Without decentralization, departmentalization is meaningless and practically impossible. 2. It helps to meet local demands more effectively. The organizational culture can help people interact better with each other. Just like the advantages, the matrix structure of Starbucks also accumulates the disadvantages of all other organizational structures under it. Sales being the exclusive field of its application, co-ordination may appear difficult between sales function and other enterprise functions. Disadvantage: Lack of Coordination. Get closer to customers Respond more quickly and efficiently to regional institution's) operations to be carried out either over a vast area or within some restricted area through branches or offices established at different zones or places in that area. As a business expands, the number of tasks and people grows with it, making it difficult, if not impossible, for a single person to oversee all employees. What are the advantages and disadvantages of product departmentalization? Accountability and performance become increasingly difficult to monitor. In this process jobs are grouped according to some logical arrangement on the basis of functions . customer segments in . There is better coordination of activities through the setting up of geographical divisions. It attempts to incorporate many of the major advantages of functional as well as divisional departmentalization. process departmentalization advantages and disadvantagesnassau oogp vision group. The grouping of jobs according to geographic location, such as state, region, country or continent. Types of departmentalization. Performance appraisal. 268. It lays emphasis on each and every activity. Perodua . Advantage: Operational Speed. Motivation of Subordinates. There are five types of departmentalization in organizations: functional, product, customer, geographical, and process. Advantages and Disadvantages This is less likely to be an issue for a smaller organization, because the different departments may be in frequent contact already. These are examples of Geographical Departmentalization and Functional Departmentalization, respectively. Organizational Structure. Reduces co-ordination between functions or departments. •allows people to specialize in one area of expertise •makes it easier to assess performance •makes decision making faster the disadvantages of product departmentalization are: •duplication of functions •coordination across different product departments •limited view of organizational goals the above advantages and disadvantages taken from … However, organizing by region requires a large administrative staff and control system to coordinate operations. 3. It handles crises instantly and successfully. Departmentalization Meaning: - Divide an organization or its work into departments. Advantages Of Product Departmentation. 1 175 Posted by BMS Team Advantages - Territorial departmentation makes possible concentration on mark and marketing channels in different geographical areas; - Develops opportunities for more efficient marketing activities because of better face-to-face communication with local interest and Austere points out that disadvantages of geographic departmentalization include a duplication of human, structural, and production resources and services, which negatively affect a company's operational performance. Additionally, it can be difficult to coordinate activities between departments located in other parts of the world. For example, each location has its own marketing department, research department, warehouse and more. There is equal access and utilization of company resources. Advantages and Disadvantages of Product Departmentalization Advantages Disadvantages One unit is responsible for giving undivided Duplication of effort, perhaps reduced attention to the product, so the unit is more efficiency. The disadvantages of departmentalization are as follows- As departments continue to grow it creates less adaptability within the organization When a company groups activities and people in one specific department there is little room for flexibility Difficulty in coordination between different departments A better understanding of each other helps in achieving the pre-set goals and targets, no matter how difficult they are. Similar departments in the various divisions carry all processes and activities. 2. When two or more people work together to achieve a group result, it is an organization. Advantages and Disadvantages of Departmentalization Departmentalization - 32,333 views Centralization versus Decentralization of Authority - 12,366 views Departmentalization is the dividing of organizational functions (design, marketing, etc.) This leads to economy in operations and . By concentrating on similar activities, specialized knowledge and skill are acquired which can be utilized for the efficient running of the departments. Therefore Coca-Cola follows both Geographical structure and Divisional structure. Departmentalization is the process of grouping jobs according to some logical arrangement. ADVERTISEMENTS: Advantages: (1) Functional departmentation represents a very natural and logical way of grouping different activities of the enterprise; (2) Such grouping ensures specialization. Sales being the exclusive field of its application, co-ordination may appear difficult between sales function and other enterprise functions. into separate units. The principal disadvantages of the geographical region are as follows: (i) Duplication of Personnel: . Functional Departmentation: It . Grouping activities on the basis of product, services or customers. This is done to. Furthermore, it strives to satisfy the varying requirements for participation, independence, and status. Disadvantage: Weakening of Common Bonds. It's a tight, controlled structure with clear lines of authority and accountability -- an advantage for companies needing a mechanized business approach. It makes sense to divide an organization by geography if different customer preferences, languages, cultures and ways of doing business exist in the areas where the business operates . christmas lights zurich 2021 nissan fairlady singapore chargers retired numbers. The five types of departmentalization are: functional, product, customer, geographical and process. Moreover, sending managers to work in each region. Geographic Departmentalization. The geographical structure allows for close communication with local customers. They also have equal power and authority. Organizing a company in this way has inherent advantages and disadvantages. These similarities between the departments ensure equal performance. 12. Products in USA Products in CHINA Dolphin Meat This is done to. departmentalization. Get closer to customers Respond more quickly and efficiently to regional Truly achievement of association relies upon a reasonable mix of centralisation and decentralization. Basically an organization is divided into different . How the business chooses to define its organizational structure - how jobs and functions are grouped and how reporting structures . The goal of this click and drag exercise is to test your understanding of the various types of departmentalization. Each geographic division is further divided into sub-divisions. . Personnel requirements are assessed and the physical resources needed to accomplish the objectives determined. The divisions have equal rights and privileges. Understand the vast differences between different regions. The main benefits or advantages of departmentalization are listed as follows: Specialization. Facilitates worker's efficiency and performance. With Advantages and Disadvantages . Q: According to Organizing Core: what are the 5 common forms of Departmentalization. For example, the salesman have to report to the regional manager and these managers will then report to anothermanager of a higher level. It focused on customers who are ultimate suppliers of money . Decentralization guarantees dynamic working of working staff and it rouses them. 2. 5. Advantages and Disadvantages of various types of Departmentalization . For example, if two regional offices are selling the same product, they may compete with each other rather than cooperate. It upgrades expertise. Advantages of Departmentalization by Territory Places responsibility at a lower level Places emphasis on local markets and problems. Departmentalization by function results in vertical, hierarchical layers of management and employees. In the divisional, the different departments serve as the unique product, geographic location, services, and costumer. Another advantage in departmentalization is there is one person who is in charge of each department, and they can specialize and focus on that one area of the organization. Development in general managerial skills . In this structure, an employee performs multiple tasks in the service of the product. This makes it possible for differentiation to occur so that more needs can be met. Advantages of Departmentalization By Function Functional departmentation is the most logical and natural form of departmentation. The disadvantages of Functional Organization: The functional organization may have unhealthy competition working with the other areas. How does an organization's structure affect the Project Manager's performance? Departmentation by Functions . In one example, there may be a request from the marketing department which may not be prioritized in order to attend . Combined or Composite Form of Departmentation. Process departmentalization is the vertical and horizontal configuration of departments, authority, and jobs within a company. In Functional departmentalization, the organization's departments are separated into groups differentiated by the functions . Advantages of Departmentalization by Territory Regional departmentalization helps local operations. The disadvantage of geographic departmentalization is that it can lead to duplication of effort and confusion over who is responsible for what. Easier to supervise, communicate and coordinate the activities. 268 227 views. In other words, workers and work are organized into separate units responsible for doing 'business' in particular geographic areas. 6. Geographic Departmentalization: organizes work and workers into separate units responsible for doing business in particular geographic areas. Disadvantages of Starbucks Organizational Structure. 3. In spite of advantages, functional departmentalization has certain limitations: (i) De . Geographical departmentalization The grouping of jobs according to geographic location, such as state, region, country or continent. The figure below shows the hybrid structure. It facilitates effective control Assists in development of all-round managerial skills Previous Post Next Post Like it? It has created several departments because of the different geographical locations and because it needs to carry out systematic and specific work functions. The primary disadvantage of geographic departmentalization is that it can lead to duplication of resources. Product departmentation focuses individual attention to each product line which facilitates­ the expansion and diversification of the products. Which ones can be utilized by McDonalds explain through examples from the case with its advantages and disadvantages. Specialized sales staff may become idle with the downward movement of sales to any specified group of customers. Advantages Disadvantages; Functional: . Disadvantages of functional departmentalization Decision making becomes slower and more bureaucratic. Diversification of products or markets is possible only by departmentalization. Geographical departmentalization The grouping of jobs according to geographic location, such as state, region, country or continent. These groups are not organized and commissioned by a centralized BLM 'board' or CEO .

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