Question

The Curewell Corporation produces and sells drugs all over the country. It has five
departments--production, sales, finance and accounts, personnel and research &
development. The company exports 25 per cent of its total output. The managing
director of the corporation has appointed you as a management consultant for
suggesting improvements in its organisational set-up.

1. Would you suggest customer departmentation or territorial departmentation?
2. Should the present functional departments be abolished?
3. Is combined departmentation the ideal choice?​

Answer 1

Answer:

Everything you need to know about the basis of departmentation. Departmentalization divides the people and function into identifiable units to achieve organizational goals.

It must be emphasized that there is no other best way of departmentalizing that is applicable to all organizations or to all situations. The pattern depends upon given situations on what managers believe yield the best results for them in a situation they face.