Types of Departmentalization

Typesof Departmentalization

Typesof Departmentalization

Departmentalizationinvolves forming various departments within an organization based onthe similar specialty for much efficiency(McShane &amp Von-Glinow, 2013).The departments may include

Functionaldepartmentalization, this type of departmentalization involvesgrouping employees as per their respective function within theorganization (McShane&amp Von-Glinow, 2013).This promotes efficiency in the sense that members within adepartment share a common skill and knowledge and can work togethertowards completing the related task.

Geographicaldepartmentalization involves organizing the management of anorganization to respond better to political, social and religiousdifferences in their geographical regions (McShane&amp Von-Glinow, 2013).This is best for international organizations as it promote upperlevel management positions with a broad perspective in responding tothe changes that may determine their success.

Productdepartmentalization entails creating departments to deal with aspecific product across all stages of production autonomously(McShane&amp Von-Glinow, 2013).This promotes high skilled expertise in the organization’s productdevelopment.

Customerdepartmentalization involves grouping the organizational departmentsto respond according to the nature and type of their customers(McShane&amp Von-Glinow, 2013).This facilitates the specific needs of a customer being respondedupon by specific employees who have specialised in that specificfunction.

Processdepartmentalization involves grouping of various activities based onthe product, service or client demand, requiring a wide range offunctions following a certain pattern (McShane&amp Von-Glinow, 2013).

Divisionaldepartmentalization is mostly applicable where an organization hasbranched into various lines of businesses operating independently butsharing a common organizational goal (McShane&amp Von-Glinow, 2013).

Forinstance, in a restaurant scenario, customer departmentalizationmight work best. This is in a case where the clients are eitherindividuals, corporate or a group event. In such a case, each ofthese activities requires to have a specific department to respond tothese needs for the company to run smoothly without one activityinterfering with the other.


McShane,S. L., &amp Von Glinow, M. A. (2013). Organizationalbehavior(6th ed.). New York, NY: McGraw-Hill/Irwin.