15 Lecture

1. What is departmentalization? a) Grouping activities and resources into separate departments b) Division of labor c) Delegation of authority d) None of the above

Answer: a

2. Which of the following is not a basis for departmentalization? a) Product b) Customer c) Technology d) Salary

Answer: d

3. Departmentalization based on geography is also known as: a) Product departmentalization b) Customer departmentalization c) Geographical departmentalization d) Functional departmentalization

Answer: c

4. Which of the following is a disadvantage of departmentalization? a) Improved coordination b) Efficient allocation of resources c) Creates barriers between departments d) None of the above

Answer: c

5. Departmentalization based on functions is commonly used in: a) Manufacturing companies b) Service companies c) Retail companies d) None of the above

Answer: a

6. Which of the following is an advantage of departmentalization based on customers? a) Customized products and services b) Efficient use of resources c) Improved communication d) None of the above

Answer: a

7. Which of the following is an example of departmentalization based on products? a) Finance department b) Human resources department c) Marketing department d) Product development department

Answer: d

8. Which of the following is a disadvantage of departmentalization based on geography? a) Increases communication and coordination b) Increases costs due to duplication of resources c) Facilitates customization of products and services d) None of the above

Answer: b

9. Which of the following is an advantage of departmentalization based on technology? a) Improved coordination and communication b) Efficient use of resources c) Encourages innovation and specialization d) None of the above

Answer: c

10. Which of the following is an example of departmentalization based on customers? a) Sales department b) Research and development department c) Legal department d) Production department

Answer: a

1. What is departmentalization, and why is it important in organizational structure? Answer: Departmentalization refers to the process of grouping activities and resources into separate departments or units based on their similarities in terms of functions, products, customers, or geography. It is important in organizational structure because it enables efficient allocation of resources, improved coordination, and effective communication within an organization.

2. Explain the advantages of departmentalization based on functions. Answer: The advantages of departmentalization based on functions include improved efficiency, clear job responsibilities, easier coordination and communication within departments, and specialized training and development.

3. What are the disadvantages of departmentalization? Answer: The disadvantages of departmentalization include the creation of barriers between departments, duplication of resources, increased bureaucracy, and decreased flexibility.

4. What is departmentalization based on customers, and why is it important? Answer: Departmentalization based on customers refers to the process of grouping activities and resources based on the specific needs and preferences of different customer segments. It is important because it enables customized products and services, improved customer satisfaction, and increased customer loyalty.

5. What is departmentalization based on geography, and what are its advantages and disadvantages? Answer: Departmentalization based on geography refers to the grouping of activities and resources based on their location. Its advantages include increased communication and coordination among geographically dispersed teams, while its disadvantages include increased costs due to duplication of resources and decreased customization of products and services.

6. Explain the advantages of departmentalization based on products. Answer: The advantages of departmentalization based on products include increased focus on specific product lines, improved coordination and communication within product teams, and specialized training and development.

7. What is departmentalization based on processes, and why is it important? Answer: Departmentalization based on processes involves grouping activities and resources based on their role in specific processes or workflows. It is important because it enables improved coordination and communication within process teams, increased efficiency, and reduced errors and delays.

8. What is cross-functional departmentalization, and how does it work? Answer: Cross-functional departmentalization involves the creation of teams that include members from different departments or functional areas. It works by enabling increased communication and collaboration among diverse perspectives and skill sets, which can lead to improved innovation and problem-solving.

9. What is departmentalization based on technology, and what are its advantages? Answer: Departmentalization based on technology involves grouping activities and resources based on their use of specific technologies or tools. Its advantages include increased specialization and innovation, improved coordination and communication within technology teams, and enhanced efficiency and effectiveness.

10. Explain the importance of effective departmentalization in achieving organizational goals. Answer: Effective departmentalization is important in achieving organizational goals because it enables the efficient allocation of resources, improved coordination and communication, increased focus on specific products or customers, and enhanced efficiency and effectiveness in achieving desired outcomes.

Departmentalization is the process of grouping activities and resources into separate departments or units based on their similarities in terms of functions, products, customers, geography, processes, or technology. This process is an essential part of organizational structure and design, as it helps organizations achieve their goals more effectively and efficiently. Departmentalization based on functions involves grouping activities and resources based on their similar functions or activities, such as production, marketing, finance, and human resources. This approach facilitates efficient allocation of resources, clear job responsibilities, easier coordination and communication within departments, and specialized training and development. However, it may create barriers between departments and lead to duplication of resources. Departmentalization based on customers groups activities and resources based on the specific needs and preferences of different customer segments. This approach enables customized products and services, improved customer satisfaction, and increased customer loyalty. Departmentalization based on geography groups activities and resources based on their location. This approach facilitates increased communication and coordination among geographically dispersed teams, but it may increase costs due to duplication of resources and decrease customization of products and services. Departmentalization based on products groups activities and resources based on specific product lines. This approach enables increased focus on product development, improved coordination and communication within product teams, and specialized training and development. Departmentalization based on processes groups activities and resources based on their role in specific processes or workflows. This approach enables improved coordination and communication within process teams, increased efficiency, and reduced errors and delays. Cross-functional departmentalization involves the creation of teams that include members from different departments or functional areas. This approach enables increased communication and collaboration among diverse perspectives and skill sets, which can lead to improved innovation and problem-solving. Effective departmentalization is essential for achieving organizational goals. It enables the efficient allocation of resources, improved coordination and communication, increased focus on specific products or customers, and enhanced efficiency and effectiveness in achieving desired outcomes. Organizations must carefully consider the appropriate departmentalization approach based on their goals, resources, and external environment.