ADMN 232 Chapter Notes - Chapter 10: Motivation, Job Satisfaction, Absenteeism

• School: Athabasca University
• Department: Administration
• Course: ADMN 232
• Professor: Dr. El

Document Summary

The most common organizational structure is functional departmentalization. Companies tend to use this structure when they are small or just starting out. Functional departmentalization: organizing work and workers into separate units responsible for particular business functions or areas of expertise. A common functional structure might have individuals organized into accounting, sales, marketing, production, and human resources departments. Product departmentalization: organizing work and workers into separate units responsible for producing particular products or services. One of the advantages of product departmentalization is that, like functional departmentalization, it allows managers and workers to specialize in one area. Unlike in functional departmentalization, however, managers and workers develop a broader set of experiences and expertise related to an entire product line. Decision making should be faster because managers and workers are responsible for the entire product line rather than for separate functional departments; in other words, there are fewer conflicts than under functional departmentalization. The main disadvantage of product departmentalization is duplication.