Departmentalization Concepts Flashcards

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Questions and Answers

What is an example of functional departmentalization?

Organized by accounting, sales, marketing, production, and HR departments (correct)

Divided into climate products, security products, and food products

Focusing organization on customer needs

International company divided by regions

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?

Divided into climate products, security products, and food products Signup and view all the answers

What are the advantages of product departmentalization?

Allows people to specialize in one area of expertise, makes it easier for managers to assess performance, makes decision-making faster. Signup and view all the answers

What are the disadvantages of product departmentalization?

Duplication and coordination across different product departments. Signup and view all the answers

What is an example of customer departmentalization?

Residential customers, medium-sized businesses, enterprise customers, and IT customers Signup and view all the answers

What are the advantages of customer departmentalization?

Focuses organization on customer needs, allows for specialization, allows for adaptation of product for specific customers. Signup and view all the answers

What are the disadvantages of customer departmentalization?

Duplication of resources, difficult to achieve coordination, workers might please customers but hurt business. Signup and view all the answers

What is an example of geographic departmentalization?

Divided by North America, Latin America, Europe, Asia, and Africa Signup and view all the answers

What are the advantages of geographic departmentalization?

Helps companies respond to different markets, reduces costs by locating unique resources closer to customers. Signup and view all the answers

What are the disadvantages of geographic departmentalization?

Duplication of resources, difficult to coordinate departments. Signup and view all the answers

What is an example of matrix departmentalization?

Combining functional and product forms Signup and view all the answers

What are the advantages of matrix departmentalization?

Allows companies to efficiently manage large, complex tasks, bigger pool of resources, provides more diverse expertise. Signup and view all the answers

What are the disadvantages of matrix departmentalization?

Requires a high level of coordination, creates confusion and conflict, requires a high level of management skill. Signup and view all the answers

What is minority domination?

Where just one or two people dominate team discussions, restricting consideration of different problem definitions and alternative solutions. Signup and view all the answers

What is the outcome of minority domination?

Restricts consideration of different problem definitions and alternative solutions, team performance may drop, team members may not feel accountable for decisions. Signup and view all the answers

What are the advantages of cross-functional teams?

Faster decision-making, improved communication, objective orientation, collective ownership, continuous innovation. Signup and view all the answers

What are the disadvantages of groupthink?

Restricts discussion and leads to a limited number of suggested solutions, leads to poor decisions, unproductive meetings, minority domination may result. Signup and view all the answers

What is the motivation equation?

Motivation = Expectancy x Instrumentality x Valence. Signup and view all the answers

What is the job performance equation?

Job Performance = Motivation x Ability x Situational Constraints. Signup and view all the answers

The team development process includes forming, storming, norming, performing, _, _, ___.

de-norming, de-storming, de-performing. Signup and view all the answers

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.