Module 6.3: Departmentalization Flashcards
Departmentalization
specifies how employees and their activities are grouped together
What is the process of Departmentalization?
Process of horizontal clustering of different types of any functions and activities on any one level of the hierarchy
Simple
Departmentalization
few people minimal hierarchy
Functional
Departmentalization
organizes employees around specific knowledge or other resources
e.g., LVMH’s HR, Finance, Marketing, Executive Departments
Divisional
Departmentalization
group employees around geographic areas, outputs, or clients
e.g., LVMH’s Subsidiaries: LV, Dior, Celine, Fendi
Team Based
Departmentalization
built around self-directed (specialty) teams that complete an entire piece of work
e.g., Dior’s seamstresses gathered together to put up a customized dress for Anya Taylor Jane’s wedding
Matrix
Departmentalization
overlays two structures to leverage the benefits of both
Network
Departmentalization
design and build a product or serve a client though an alliance of several organizations
e.g., designers from Dior, LV, Fendi gathered together to build a customized bag for Anna Wintour