Monday, August 6, 2012

Organizing The Business | Explain Specialization & Departmentalization


Explain specialization and departmentalization.

Possible Answer: The process of identifying specific jobs and designating people to perform them leads to job specialization. After they are specialized, jobs are grouped into logical units—the process of departmentalization. Departmentalization follows one of five forms: (1) product departmentalization, (2) process departmentalization, (3) functional departmentalization, (4) customer departmentalization, or (5) geographic departmentalization. Larger companies take advantage of different types of departmentalization for various levels.

Source: Business Essentials, 8e (Ebert/Griffin) – Global Edition

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