3. Process departmentalization, which is based on the production process used by the organizational unit (such as lumber cutting and treatment, furniture finishing, and shipping).

For example, the organization of Sibneft, a Russian oil company, reflects the activities the company needs to perform in order to extract oil from the ground and turn it into a final product: exploration and research, production (drilling), refining, and marketing and distribution.4 Pixar, the animated-movie company, is divided into three parallel yet interactive process-based groups: technology development, which delivers computer-graphics tools;

creative development, which concocts stories and characters and animates them; and production, which coordinates the filmmaking process.5