Question

As the tasks of organizations become increasingly complex, the organization inevitably must be subdivided—that is, departmentalized—into smaller units or departments. The three basic approaches to departmentalization are functional, divisional, and matrix. As organizations divide work into different units, we can detect patterns in the way departments are clustered and arranged. There are strengths and weaknesses that characterize each of these types of structures, and each structure is particularly suited for a different type of environment.

Answer 1

Functional departmentalization: It is the most used in organizations, formed by specialists in certain functions. The strenghts of this structure are cost reduction by performing the task together and optimizing the concentration and ability of the employee who effectively utilizes their skills. Weaknesses are greater bureaucratization in the company, which has higher levels of hierarchy and the possibility of communication barriers between other departments. This structure should be implemented in companies that need stability and few changes in their activities.

Divisional Departmentalization: In this structure the divisions are separate and have independence from performing tasks to achieve results. In this approach there are variant structures by customers, projects, geographic location and process phases. The advantages of this separation structure is the independence of each department to operate according to its own particularity, achieving greater efficiency. The disadvantages is the possibility of conflict and lack of internal communication. It is a suitable structure for companies that want to focus on an independent product or market.

Departmentalization Matrix: It is the most used form in large corporations, as it is a mixed structure that combines the functional and divisional approach in the same organization. The advantages of this structure are greater employee specialization, greater work flexibility and stability. The disadvantages may be the creation of internal conflicts and difficulties in personnel coordination.