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Departmentalization in Management
Definitions
Delegation of Authority
Matrix Model
Matrix Model
100
an organization is organized into departments based upon the respective functions each performs for the organization, For example, a manufacturing company may create a production department, sales, and marketing department, accounting department, and a human resources department.
What is Functional Departmentalization
100
the process of dividing work into relatively specializes jobs to achieve advantages of specialization.
What is division of labor
100
entrusting someone else to do parts of your job
What is Delegation
100
An advantage for Matrix Model. Each project or product unit can share the specialized resource with other units rather than duplicating it to provide independent coverage for each.
Efficient us of resources:
100
Stages of Matrix Organisation Model Transformation The final step in the evolution to Matrix organization.
Product management departments
200
an organization organized along geographic lines. This is often a good idea for large multinational firms with offices around the world. All activities related to the organization's activities in each region are handled by a department in that region
What is Geographic Departmentalization
200
A self-organized, group of employees whose members determine, plan, and manage their day-to-day activities and duties under reduced or no supervision
What is self-managed team
200
The process by which authority is distributed downward in an organization
What is Delegation of Authority
200
An advantage for Matrix Model. Matrix structures encourage con- stant interaction among project unit and functional depart- ment members
Flexibility in conditions of change and uncertainty;
200
Stages of Matrix Organisation Model Transformation After the initial task force, a typical next step is to create permanent teams consisting of representatives from each functional department.
Teams
300
jobs are grouped on the basis of common Clients who have common needs or problems that can best be met by having specialists for each.
What is Customer departmentalization
300
The concentration of management and decision-making power at the top of an organization's hierarchy.
What is centralization
300
Empowering Employees, Relieving the Burden and More Efficient Decision-Making
What is advantages of Decentralize Authority (Delegate)
300
Advantages of Matrix Organization Technical specialists interact with other specialists while assigned to a project.
Technical excellence
300
Advantages of Matrix Organization Placed in groups consisting of individuals representing diverse parts of the organization, employees come to appreciate the different points of view expressed and become more aware of the total organization.
Providing opportunities for personal development
400
this method groups jobs on the basis of product, projects or markets.
What is Product departmentalization
400
the process by which authority is distributed downward
What is delegation of authority
400
remain control, Lower administration cost, and Lower overhead cost due to duplication of functions
What are Reasons to centralize Authority
400
Advantages of Matrix Organization top management is able to be less involved with day-to-day operations. This makes it possible for top management to delegate ongoing decision making.
Freeing top management for long-range planning
400
Stages of Matrix Organisation Model Transformation Individuals from each functional department come together to responding to a new product. Once its objective is achieved then it dissolves.
Task Force
500
"divisional organization" is another way to say this.
Product Departmentalization
500
It is also called "Natural sequence of work"
Horizontal specialization
500
who said "No person will make a great business who wants to do it all himself or get all the credit"
Andrew Carnegie
500
Advantages of Matrix Organization Decision making within the group tends to be more participative and democratic than in more hierarchical settings
Improving motivation and commitment
500
Stages of Matrix Organisation Model Transformation They have no formal authority over the team members but must rely on their expertise and interpersonal skill to influence them. Companies such as AT&T, Johnson & Johnson, and Procter & Gamble make considerable use of the product management concept.
Product managers