Thursday, May 23, 2019

Product and Geographic Departmentalization Essay

est for a society managers are faced with several decisions/dilemmas. The following should be considered The wares they produce Who their customers are Where their customers are fixed Once the above considerations has been taken, a manager can then look at the advantages and disadvantages to the disparate types of departmentalization. Two types of departmentalization are product and geography. Product departmentalization is when a ships company is organized by specific products. Take a look at 3M Corp they make both(prenominal) consumer and industrial products.All of 3M Crops products operate under different divisions (Griffin, 2013). For example their Post-it and Scotch Brite brands could be located in the same building, but do not have the same managers or staffing resources. Basically the mangers and staff for both brands are coexisting with no business interaction. This type of departmentalization can also apply to retail stores. Most retail stores are broken into different departments. The advantages of product departmentalization areAllows people to specialize in one area of expertise Makes it easier to assess performance Makes decision making faster The disadvantages of product departmentalization are duplicate of functions Coordination across different product departments Limited view of organizational goals The above advantages and disadvantages taken from (Zararain, 2012) Geographic departmentalization is creating departments in the geographical areas they service. Coca-Cola is a company that operates using geographic departmentalization.They have 6 operating regions Eurasia & Africa, Europe, Latin America, North America, Pacific and Bottling Investments in addition to Corporate (Unknown, 2011). The advantages of product departmentalization are Effective and efficient management. Reduces costs by locating organizational resources closer to customers The disadvantages of product departmentalization are Duplicates functions Functions are disper sed, therefore control cannot be exercised effectively Isolates organizational areas from one another.The above advantages and disadvantages taken from (Zararain, 2012) I feel managers are challenged to try and decide what departmentalization type will best suit their companys needs. Just because one fits today, that may not be the case in years to come. A manager may need to revisit the different departmentalization types and pick a new one that best fits the companys structural needs. Note Only two of the five-departmentalization types have been discussed. For more information on the other types please refer to page 219, chapter 7 in Business.

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