3. Departmentalization

Using your knowledge of departmentalization in organizations, answer the questions posed.

Which form of departmentalization is best if the company services both business clients and end consumers?

Location

Customer

Product

Function

Which advantage would you cite if you were advising a company to group jobs by type of customer?

Coordinating activities inside each department is easier.

Accountability is decreased.

Tailoring services to meet customer needs is easier.

Administrative costs are higher