1.5.1 Functional Versus Product Departmentalization

Question 1

What are the five design decisions that are involved in creating an organizational structure?

Answer 1

1. Departmentalization
2. the delegation of authority
3. coordinating mechanisms
4. division of labor
5. span of control

Question 2

A matrix structure is usually a unique combination of what two forms of departmentalization?

Answer 2

function and product

Question 3

What is functional departmentalization?

Answer 3

When all of the jobs associated with performing a particular function can be grouped together into the same department.

Question 4

What is the advantage of functional departmentalization?

Answer 4

it promotes skill specialization by having people who face similar problems and opportunities work together

Question 5

What are the disadvantages of functional departmentalization?

Answer 5

it reduces communication and cooperation between departments

Question 6

What is product departmentalizaiton?

Answer 6

consist of combining jobs that produce similar products into a department. Typically occurs in large firms when it becomes difficult to coordinate the various functional departments

Question 7

What are the advantage of product departmentalization?

Answer 7

it creates greater interdepartmental coordination and focuses the efforts of the department on producing an effective and useful product

Question 8

What are the disadvantages of product departmentalization?

Answer 8

the resources and skills of the organization are not fully utilized unless the organization is extremely large.