Principles of Management?
Favorite Answer
a. By PRODUCT (a book publisher might have departments for trade books, textbooks, and technical books.)
b. By CUSTOMER GROUP (a pharmaceutical company might have separate departments that focus on the consumer market, on hospitals, and on doctors.)
c. By GEOGRAPHIC LOCATIONS (operations in Japan, Europe, and Korea.)
d. By PROCESS (a firm that makes leather coats may have one department to cut the leather, another to dye it, and a third to sew the coat.)
e. Some firms use a combination of departmental techniques.
f. Companies must learn to coordinate traditional departmental efforts with those of their Internet operations.
Knowledge and Skill. People are grouped by what they know. For example, hospitals have departments like Neurology, Allergy, Cardiology, Internal Medicine, Gastro-Enterology, etc.
Work Process. Workers are grouped based on the process or activity used by the worker. For example, a manufacturing company may create separate casting, welding and machining groups. Often, it is the underlying technology that determines the departmentation. For example, a print shop may have separate letterpress and offset departments — two different processes for getting the same outputs.
Business Function. Grouping by the basic function in the organization: purchase supplies, raise capital, generate research, etc. This leads to the familiar departments of manufacturing, marketing, engineering, finance, and so on.
Time. When work is done. For example, shifts in a factory or hospital or hotel.
Output. Grouping based on the products or services that the employee works on. For example, a manufacturer may have different divisions for each of its product lines.
Client. Grouping based on the type of clients their work is ultimately sold to. For example, computer companies often have different sales departments for home, small business, educational, government and large business customers.
Place. Groups are based on the geographical areas that they serve. For example, during WW2, the US War Dept. was organized into 7 “theatres” corresponding to regions of the world where the US was fighting. Similarly, Post Offices are often divided by regions and zipcodes.
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