2. Product departmentalization, which is based on the goods or services produced or sold by the organizational unit (such as outpatient/emergency services, pediatrics, cardiology, and orthopedics). For example, ITT Industries is organized into four product divisions:

A Fluid Technology (pumps and wastewater treatment equipment), Defensive Electronics and Services, Motion and Flow Control products (like shock absorbers, pumps for Whirlpool spas, and beverage dispensers), and Electronic Components (like electromechanical switches, keypads, and more).3