Questions and Answers
What is an example of functional departmentalization?
What are the advantages of functional departmentalization?
Allows work done by highly qualified specialists, lowers costs by reducing duplication, makes communication and coordination easier.
What are the disadvantages of functional departmentalization?
Cross-department coordination can be difficult, may lead to slower decision-making, may produce managers and workers with narrow experience and expertise.
What is an example of product departmentalization?
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What are the advantages of product departmentalization?
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What are the disadvantages of product departmentalization?
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What is an example of customer departmentalization?
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What are the advantages of customer departmentalization?
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What are the disadvantages of customer departmentalization?
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What is an example of geographic departmentalization?
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What are the advantages of geographic departmentalization?
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What are the disadvantages of geographic departmentalization?
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What is an example of matrix departmentalization?
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What are the advantages of matrix departmentalization?
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What are the disadvantages of matrix departmentalization?
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What is minority domination?
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What is the outcome of minority domination?
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What are the advantages of cross-functional teams?
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What are the disadvantages of groupthink?
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What is the motivation equation?
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What is the job performance equation?
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The team development process includes forming, storming, norming, performing, ___, ___, ___.
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Study Notes
Functional Departmentalization
- Organized around specific functions such as accounting, sales, marketing, production, and human resources.
- Allows work to be completed by specialized professionals, increasing overall efficiency.
Advantages of Functional Departmentalization
- Utilizes highly qualified specialists, enhancing productivity.
- Reduces operational costs by minimizing duplication of tasks.
- Facilitates effective communication and coordination across departments.
Disadvantages of Functional Departmentalization
- Inherent difficulty in coordinating activities across different departments.
- Slower decision-making processes due to bureaucratic layers.
- Managers and workers may develop limited expertise, hindering flexibility.
Product Departmentalization
- Organized based on product lines, such as climate products, security products, and food products.
- Enables individuals to focus on a specific product area, promoting deeper expertise.
Advantages of Product Departmentalization
- Specialization leads to improved performance in product-related tasks.
- Simplifies performance assessments for product managers.
- Accelerates decision-making due to decreased internal conflict.
Disadvantages of Product Departmentalization
- Potential for resource duplication across product lines.
- Challenges in coordinating efforts between different product departments.
Customer Departmentalization
- Structure focused on customer segments like residential, medium-sized businesses, and enterprise customers.
- Prioritizes direct response to customer needs for product adaptation.
Advantages of Customer Departmentalization
- Orientation around customer requirements rather than product focus enhances engagement.
- Allows for specialized services tailored to specific customer groups.
Disadvantages of Customer Departmentalization
- Risk of resource duplication across customer segments.
- Difficulties in achieving optimal coordination may arise.
- Employees’ focus on customer satisfaction can sometimes conflict with business objectives.
Geographic Departmentalization
- Companies divided by geographical regions such as North America, Latin America, Europe, Asia, and Africa.
- Facilitates responses to region-specific market demands.
Advantages of Geographic Departmentalization
- Enables companies to tailor strategies to local market conditions and preferences.
- Reduces costs by positioning resources closer to customers.
Disadvantages of Geographic Departmentalization
- Similar issues of resource duplication persist across regions.
- Coordination challenges due to geographical distance between teams.
Matrix Departmentalization
- Combines functional and product lines, organized by function (e.g., finance, HR) and product category (e.g., beauty, homecare).
- Offers versatile resource management for complex tasks.
Advantages of Matrix Departmentalization
- Efficiently manages large projects requiring diverse expertise.
- Expands the pool of resources available for tackling organizational challenges.
Disadvantages of Matrix Departmentalization
- High coordination demands can complicate operations.
- Dual reporting structures may lead to employee confusion and conflict.
- Requires managers with advanced skills to navigate complexity.
Minority Domination
- Refers to situations where a few individuals dominate discussions, limiting diverse viewpoints.
- Can result in a narrow focus on problem definitions and solutions.
Outcomes of Minority Domination
- Leads to diminished team performance and accountability.
- Restricts exploration of various problem definitions and alternative solutions.
Cross-Functional Teams Advantages
- Promotes faster decision-making through collaborative efforts.
- Enhances communication across various functions within the organization.
- Fosters objective orientation and collective ownership among team members.
- Encourages continuous innovation through diverse input.
Groupthink Disadvantages
- Enforcement of conformity can restrict discussion and limit solution diversity.
- Results in inefficient meetings and potentially harmful decisions.
- May facilitate minority domination dynamics within groups.
Motivation Equation
- Motivation is determined by expectancy, instrumentality, and valence, highlighting the multifaceted nature of motivation.
Job Performance Equation
- Job performance is influenced by motivation, ability, and situational constraints, establishing a framework for understanding workplace effectiveness.
Team Development Process
- Involves stages: forming, storming, norming, performing, de-norming, de-storming, and de-performing, detailing the lifecycle of team dynamics.
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Description
This quiz focuses on the key concepts of functional departmentalization, including definitions, advantages, and disadvantages. Ideal for students seeking to understand organizational structures and their benefits in business management.