Page 201 - Introduction to Business
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CHAPTER 5 Managing and Organizing Business 175
EXHIBIT 5.3
Methods of Departmentalization
Departmentalization by Function Departmentalization by Product or Service Sold
U.S. military Law firm
U.S. Army U.S. Navy U.S. Air Force Tax Real estate Securities law
(ground battle) (water battle) (air battle) department department department
Departmentalization by Geography Departmentalization by Customer
Regional Texas Clothing
ice cream manufacturer retail store
New Mexico Oklahoma Louisiana Men’s Women’s Children’s
department department department department department department
Texas Arkansas
department department
Multiple Forms of Departmentalization
Regional
hospital
General
Administrator
counsel
Functional Human resource Operations Accounting
departmentalization department department department
Geographic Northern branch hospital Main hospital Southern branch hospital
departmentalization administration department administration department administration department
Product or service Cardiology Psychiatry Orthopedics
departmentalization department department department
Customer Children’s Adult
departmentalization psychiatry psychiatry
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