HUMA 1745 Lecture Notes - Lecture 5: Departmentalization
1 May 2018
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HUMA 1745 Lecture 5 Notes – Customer Departmentalization
Introduction
• Casting; press; tubing; finishing; and inspecting, packing, and shipping.
• This is an example of process departmentalization, because each department specializes
in one specific phase in the production of aluminum tubing.
• Since each process requires different skills, this method offers a basis for the
homogeneous categorizing of activities.
• Process departmentalization can be used for processing customers, as well as products.
• For example, in some provinces, you may go through a series of steps handled by
several departets efore reeivig your driver’s liese
• Validation by a motor vehicles division
• Processing by the licensing department
• Payment collection by the treasury department.
• Yet another way to departmentalize is on the basis of the particular type of customer
the organization seeks to reach.
• Microsoft, for example, is organized around four customer markets
• Consumers, large corporations, software developers, and small businesses.
• Customers in each department have a common set of problems and needs best met by
having specialists for each.
• Large organizations may use all the forms of departmentalization we have described.
• A major Japanese electronics firm organizes each of its divisions along functional lines
• Its manufacturing units around processes, sales around seven geographical regions, and
each sales region into four customer groupings.
• In a strong recent trend among organizations of all sizes, rigid functional
departmentalization is increasingly complemented by teams that cross traditional
departmental lines.
• As we described as tasks have become more complex, and more diverse skills are
needed to accomplish those tasks, management has turned to cross-functional teams.
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