Organization Structure by Departmentation

Organization structure – Department

1. Departmentation by organization enterprise functions.

2. Departmentation by Geography / territory.

3. Departmentation by customer services.

4. Departmentation by product.

Dept. by products

Grouping of activities according to product / product lines especially on multilines enterprises.

Meeting needs profitably -> market.

Product is a set of tangible and intangible attributes that a customer is ready to buy.

Product linement essentially for a similar use.e.g. Produce

The all variety of tea in the land of Unilever is called product.

Other variety which they have called product range.

Dept. by customers

Grouping of activities that reflect primary interest in customers.e.g.

It’s all activities base on customer services.

Dept. by territory / geography

Grouping of activities by area /territory in enterprise operating over wide areas.

Automobile, chains retain ling, Govt depts.

Example of diamonds which get from south Africa and send for selling purpose to Belgium and further to other countries like India (Bombay -Dabrees) for as a product / making a shape for use.

Advantages

1. It places responsibility at lower level.

2. Places emphasis on local market problems.

3. Improve coordination on a region.

4. Takes advantages of economies of local operations.

5. Better