The document discusses departmentalization in organizations. It describes departmentalization as the process of dividing an organization into departments that group similar jobs, functions, or resources. Common bases for departmentalization include function, product, customer, and location. The document uses Coca-Cola as an example, describing its functional departments like production, sales and marketing, finance, and human resources. Departmentalization allows for specialization, helps with growth and responsibility, and facilitates better management, control and customer service.

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Abstract:
The second building block of organization structure is the grouping of jobs
according to some logical arrangement. The process of grouping job is called
departmentalization. After establishing the basic rationale for departmentalization, we
identify some common bases along departments are created.

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Introduction:
In departmentalization, similar activities relating to accounts are grouped together
to form various departments.
Departmentalization involves dividing an organization into different departments, which
perform tasks according to the departments' specializations in the organization.
Departmentalization as a means of structuring an organization can be found in both
public and private organizations. An organization can structure itself into departments
in the following ways.

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Grouping Job; Departmentalization:
All the activities relating to accounts are together grouped together to make
the accounts department, similarly purchase department , production department, sales
department, finance department, human resource (HR) department, etc.
Departmentalization is the process of dividing the organization into different
department. It is the process by which an organization expands horizontally.
According to Professors Pearce and Robinson,
“Departmentalization is the grouping of job, processes, and resources into
logical units to perform some organizational task.”
Common bases for Departmentalization:
Departmentalization has four common bases.
There are some other bases. These are,
 Time
 Sequence
Function
Product
Customer
Location

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Classification of Departmentalization:
Departmentalization is classified according to this bases. There are four type
of Departmentalization, these are:
o Functional Departmentalization
o
o Product Departmentalization:
o Customer Departmentalization:
o Geographic Departmentalization:
President
Marketting Finnce Production
President
Cosmetic Clothing Applience
President
Government Industrial Consumer
President
Central Northeast Southwest

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Forms of Departmentalization:
President
Computer
Manufaturing
Dallas
Phoenix
Finance Marketing
Industrial
sales
Consumer
sales
Northwest
U.S.
Southwest
U.S.
Central U.S.
Southeast
U.S.
Northeast
U.S.
Software
Finance Marketing Design
Chicago
St. Louis

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Necessity of Departmentalization:
NecessityofDepartmentalization Specialization
Growth and Expansion
Fixing Responsibility
Better Customer Service
Performance appraisal.
Management development.
Optimum utilizationofresources
Facilitates better control.

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Organization which is departmentalized:
Cocacola Company:
On the basis of functional approach the Coca-Cola Company is divided into
different departments. Grouping of employees is done on the basis of their common
skills and work activities. Such kind of approach helps the company in solving their
problems and it also make the less the need of training the employees specially.
The general manger is head of all the departments all the department have to report
to the general manager in the Coca-Cola Company. There are five major departments
in the company which are as follow:
 Production Department
 Industrial Relations Department

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 Sales and Marketing Department
 Human Capital Department
 Finance Department
Production Department:
This department looks around all the production of the company. All plants in
the country are in under its control.
Industrial Relation Department:
This department deals with the problems of the employees. The department
listen the problems of the employees and send them to the high authorities for
settling them up and stop them from becoming a hurdle in the work progress of the
company.
Sales and Marketing department:

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This department makes sure that the product is easily available in the market
for the customers to buy and deals with the issues of advertisement, promotion, and
distribution of the product.
Human Capital Department:
This department takes care of the efficient workers of the company, they select
some efficient workers of in the company recommend their names for promotion in
job so that the workers remain happy and don’t leave the company. Management
level employees are dealt by the department.
Finance Department:
The department is concerned with cost and price of the products produced by
the company. It also tackles with import related issues of the company. Finance
department is assisted by the sales and marketing department in making invoices
and payroll entries (The Coca-Cola Company, 2014)
About Cocacola:
The Coca-Cola Company, a retailer, manufacturer and marketer of non-
alcoholic beverages, is a market leader in its industry currently offering more than
500 brands in over 200 countries or territories. The company operates a franchised
distribution system dating from 1889 where the Coca-Cola Company only produces
syrup concentrate which is then sold to various bottlers throughout the world who

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hold an exclusive territory. The Coca-Cola Company headquartered in Atlanta, Georgia
owns its anchor bottler in North America, Coca-Cola Refreshments.
This behemoth has managed to maintain its position as a market leader for over a
hundred years and is still going strong. This paper explores the history, mission,
vision, and organizational structure and management functions of the Coca-Cola
Company and tries to explain leadership and some management styles applied by
the company.

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Conclusion:
encompassing the use of either of the departmentalization strategies, we find
that departmentalization by process generally is advantageous in cases of stable
environments, while departmentalization by purpose, featuring self-containment and
certain amounts of independence, appears to be the appropriate strategy for handling
changing or unpredictable circumstances. Alfred Chandler (in: March and Simon,
1958) identified a correlation between the application of purpose departmentalization
and the use of a diversification strategy:
”The dominant centralized structure had one basic weakness. A very few men were
still entrusted with a great number of complex decisions. ... As long as an enterprise
belonged in an industry whose market, sources of raw materials, and production
processes remained relatively unchanged, few entrepreneurial decisions have to be
reached. In that situation, such a weakness was not critical, but where technology,
market, and sources of supplies were changed rapidly, the defect of such a structure
became more obvious.”

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Reference:
 en.wikipedia.org
 kalyan-city.blogspot.com/