What are the five types of departmentalization?
Five basic types of departmentalization (see Exhibit 8-2) are commonly used in organizations: -Functional. Based on the primary functions performed within an organizational unit. -Product. Based on the goods and services produced or sold by the organizational unit. -Process. Based on the production process used by the organizational unit. -Customer. Based on the primary type of customer served by the organizational unit. -Geographic. Based on the geographic segmentation of organizational units. >lg 3. How can the degree of centralization/decentralization be altered to make an organization more successful? In a highly centralized structure, top management makes most of the key decisions in the organization with very little input from lower-level employees. Centralization lets top managers develop a broad view of operations and exercise tight financial controls. In a highly decentralized organization, decision-making authority is pushed down the organizational hierarchy, giving lower lev
