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Departmentalization
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==Popular types of departmentalization== * '''Functional departmentalization''' - Functional departmentalization is "characterized by the arrangement of a bankβs activities along functional lines such as accounting, marketing, human resource management, training and development, research and development, among others".<ref name=":1">{{cite journal |last=Ugoani |first=J. |year=2021 |title=Understanding the relationship between departmentalization and management performance: first bank's exemplary model |journal=International Journal of Environmental Planning and Management |volume=7 |issue=2 |pages=59β71 |ssrn=3867332}}</ref> * '''[[Product (business)|Product]] departmentalization''' - Production, marketing, and often accounting activities related to one product are grouped under one department, with the product manager as the supervisor.<ref name=":1" /> * '''[[Customer]] departmentalization''' - Recognition of the unique needs of individuals, groups, or customers, coupled with management's commitment to reflecting that uniqueness in the delivery of products and services, may require structuring the organization according to different types of customers. It indicates dividing the organization's customers into subgroups and empowering managers to effectively manage all activities related to the satisfaction of a specific customer group.<ref name=":1" /> * '''[[Geographic|Territorial]] departmentalization''' - The adoption of sectorization of inherent territories includes; (i) the need to leverage economic localization (ii) the need to minimize the costs in the geographic markets, and (iii) reducing communication problems.<ref name=":1" /> *'''Mixed Departmentalization''' - It is common for organizations adopt mixed departmentalization which involves the adoption of two or more forms of departmentalization.<ref name=":1" /> *'''Project Departmentalization''' - It is mainly adopted by organizations engaged in contract jobs and other time-specific projects.<ref name=":1" /> *'''Matrix''' '''Departmentalization''' '''-"'''The matrix structure or departmentalization reflects both a functional and project orientation. It is essentially a superimposition of the project structure on the functional structure".<ref name=":1" />
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