Creating Departments around Products

With product departmentalization, departments are organized for each of the company’s products or services, or for each family of products. Department heads in this type of organization are responsible for both creating and marketing a product, a family of products, or a service.

Arranging departments around products is sometimes called diviosionalization. Divisionalization exists when the firm’s major departments are organized so that each can manage all the activities needed to develop, manufacture, and sell a particular product, product line, or service. The head of such a division usually has functional departments—say, for production, sales, and personnel—reporting to him or her. As a result, each of these product divisions is self-contained. In other words, each controls all or most of the resources required to create, produce, and supply its product or products.

My Consultancy–Asif J. Mir – Management Consultant–transforms organizations where people have the freedom to be creative, a place that brings out the best in everybody–an open, fair place where people have a sense that what they do matters. For details please visit www.asifjmir.com, and my Lectures.

 

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