Modern Management: concepts and skills, 14/e

Types of Departmentalization

The following sections highlight several different ways in which managers may departmentalize their organizations. In particular, the following illustrate how Sony might employ the various departmental structures discussed. Table 8.2 summarizes the major advantages and disadvantages associated with each type of departmentalization.

Departments Based on Function

Perhaps the most widely used basis for establishing departments within the formal structure is the type of work functions (activities) being performed within the management system.44 Functions are typically divided into the major categories of marketing, production, and finance. Figure 8.4 is an organization chart showing structure based primarily on function ...