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In any size of the organization or complexity workplace, organizational structures are very important factors that the businesses must have, so the employee will know their position, their responsibilities and tasks. To develop and improve organization performance, the organization can use various structural can take on, however the organization need to find the best organisational structure that depends on many factors including the work, products or services, the size of the employee, geographic and target market (demographic customer’s base).
The following section provides details of the five methods have traditionally been used to departmentalize employee and jobs, also advantage and disadvantage each of the methods. Traditional organizational structures are connections among these positions are demonstrated in an organisational Chart which will show how management is organized ‘vertical and horizontal configuration of departments, authority and job within a company’ (Williams & McWilliams 2010, p.
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175) each of department has a manager, who runs day- to- day operations and ultimately report to the CEO, however this traditional model is common use in all church, government and military organization, because these organizations are stable, cannot respond to change and slow to act.
For example every soldiers answer to his commanding officer, while the president is at the top of the chain as command-in-chief.
Departmentalization is ‘the subdivision of work is the basic meaning of “forms”. The multidivisional form is defined as decentralized management structure; organized into products divisions, each division containing a unitary structure; and a central office to make to strategic decisions.’ (P. James L. 1997) generally the basic decisions that managers have to make as they develop a traditional organizational structure are using the five traditional methods of functional, product, customer, geographic and matrix departmentalization. Which mean two or more people working together as a group to complete a specific task, by divided the group to work in different departmentalization, to help achieve the organization objectives and goals.
However ‘Determining the functions to be performed involves consideration of division of labour,’ (P. Montanna &B. Charnov, 1993, p. 1) and depending on the size of the grouping that managers supervise. The degree of decision-making authority is centralization and usually were made by the top management of the highest vertically structures hierarchy. This section is additional detail and description of five methods has been used traditionally to departmentalization. Functional departmentalization: group of employee and job based on work performance, example finance and accounting, marketing and sale, human resource and administration and technical and operating. For another example of Functional departmentalization at Victoria University is Academic Support and Development because this department can students with University assessment tasks such as writing skills, reference skills, online language translator and providing expert support the student academic success and retention across the university.
The advantage of functional departmentalization is efficiency of work and is to be done by specialist skills and high qualified. The disadvantage is inflexibility of work because the stuff only is qualifies for one specialisation. Products departmentalization: group of employee and work for producing major product or services area in the organization or company. Example David Jones, women’s clothing, men’s clothing, home and food. The advantage of the product departmentalization is that increases accountability for product performance and allow manager and employee work in one area of expertise. The disadvantage is the challenge of coordinating across different product departments. Customer departmentalization: group of employee and work into particular responsibility based on customer’s problem and need. Example: government, education, health, wholesale or retail. The advantage is focused on customer need rather than on products or business function.
The disadvantage customer departmentalization is the satisfaction or feedback from customer is challenging of coordinating across different customer departments. Geographic Departmentalization: groups of employee and work ‘into separate units responsible for doing business in particular geographic area’ (Williams & McWilliams 2010, p.180). Example North, South, West, East). The advantage of geographic departmentalization is face to face communication between the service provider and service receiver. The disadvantage is required more human capital and the control cannot exercise effectively. Matrix departmentalization: a combined of one or two group form of departmentalization are used together based on particular project, most often are from product and functional departmentalization working together. The advantage of matrix departmentalization is allowing the organization to efficiently manage large, complex tasks and efficiency avoiding duplication.
The disadvantage is requires a high level of management skill and can cause of conflict between bosses in departments. Through a different perspective on the issue can be seen by comparing between traditional model and modern model of the organizational structures, the traditional of organizational structures is illustrated as have effectiveness and efficiency of products or services more than modern organizational structures. Because of emphasis on job specialization, highly performed on definite procedures and policy in the organization that effective work and worker, also the decentralization ‘is the location of most authority at the upper levels of the organization. In a centralized organization, manager makes the most decision, even the relatively small one’ (Williams & McWilliams 2010, p.185) which help and improve the organization achieve their objectives and goals are better and quicker than apply on modern organizational structures. For the modern or twentieth century organizational structures is redesigning of making objective and goals setting process is through empower worker.
According to (Williams & McWilliams 2010, p.185) Empower worker means’ permanently passing decision –making authority and responsibility from managers to workers by giving them the information and resources they need to make and carry out good decisions’. Which means all the process need to be share to every levels and decentralized authority is allowing a significant amount of worker within the organization make the decision necessary to solve the problem. In conclusion the traditional organizational structures has five methods been used to departmentalizing work and workers such as the work Functional performs, the Product or Service offered, the target Customer or client, the Geographic region covered and the Matrix project that is combine or form two or more departmentalization to work together. These methods are used to in organization which effect work and worker with the best contribute to accomplishment organization’s objectives and goals.
Five methods of Departmentalization in Management. (2016, Apr 26). Retrieved from https://studymoose.com/five-methods-of-departmentalization-in-management-essay
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