Customer departmentalisation
It involves organising around the type of customer served.
Advantages of customer departmentalisation
-D-A-C-I
-D-A-C-I
-Develops managers who become customer advocates
-Allows greater customer focus
-Clearly identifies key customers
-Is suited to understanding customer needs
Disadvantages of Customer departmentalisation
-Does not foster coordination between customers
-Fosters politics in resource allocation
-Customers tend to be very demanding
-Restricts problem solving to a single type of customer
Network departmentalisation
The organisation subcontracts some or all its operating functions to other organisations, and coordinates their activities through managers and other personnel at its headquarters or by a virtual organisation
Advantages of network departmentalisation
-Lean structure
-Workforce flexibility
-Specialised teams
-Lower cost
Disadvantages of network departmentalisation
-s-c-o-l
-Little hands on control
-Operations not under one roof
-Structure changes rapidly
-Characterised by contractors
Matrix departmentalisation
It integrates activities and keeps costs down by eliminating duplication of key functional activities for each product line.
Advantages of matrix departmentalisation
-AWE
-A-W-E
-Allows employees to learn new skills in different areas
-Works best in organisations with limited resources and mulitple products
-Encourages flexible sharing of human resources across product lines
Disadvantages of matrix departmentalisation
R-R-R
-Require people to work for two bosses which can be frustrating and confusing
-Requires people to develop good interpersonal skills
-Requires a skilled matrix manager who can maintain a balance between function and product interests
Job design
The way tasks are combined to form complete jobs
Job specialisation
The narrowing down of activities to simple, repetitive routines.
Job expansion
The process of making a job less specialised
Job rotation
It involves employees performing different jobs for set periods.
Job enlargement
It increases a job’s scope in order to break the monotony of a limited routine.
Job enrichment
It implemented by adding depth to the job
Differences between mechanistic systems and organic systems (Mechanistic systems)
-It is a rigid and tightly controlled structure
-Work is divided into fixed and highly specialised tasks
-Specific roles are prescribed for each employee
Differences between mechanistic systems and organic systems (Organic systems)
-There is highly adaptive, flexible structure
-Work is defined in terms of general tasks
-Generalised roles are accepted
Technological interdependence
the degree of coordination required between individuals and departments to transform information and raw materials into finished products.
Three types of technological interdependence
-Pooled technological interdepence
-Sequential technological interdepence
-Reciprocal technological interdepence
Pooled technological interdependence
Involves little sharing of information or resources within a department or among departments.