Customer departmentalization departmentalizing on the

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Customer Departmentalization
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Departmentalizing on the basis of the particular type of customer the organization seeks to reach. The assumption is that customers of each department have a common set of problems and needs that can best be met by having specialists for each. Chain of Command – the continuous line of authority that extends from upper organizational levels to the lowest level and clarifies who reports to whom. Delegation – assignment of authority to another person to carry out specific duties, allowing the employee to make some of the decisions. Span of Control – the number of employees that report to a manager. The wider or larger the span, the more efficient the organization. Wider spans of control can reduce costs, cut overhead, speed up decision-making, increase flexibility and get closer to customers and empower employees. Centralization – the degree to which decision-making is concentrated at a single point in the organization. If top management makes the organization’s key decisions with little or no input from lower-level employees, then the organization is centralized. Decentralization – the degree to which decision-making is distributed to lower-level employees. In a decentralized organization, action can be taken more quickly to solve problems, more people provide input into decisions, and employees are less likely to feel alienated from those who make the decisions that affect their work lives. It also helps to make it easier to address customer concerns as well. Organizations are less centralized have a greater amount of participative decision-making. Formalization – the degree to which jobs within the organization are standardized. If jobs are highly formalized, there are explicit job descriptions, lots of organizational rules, and clearly defined procedures covering work processes in organizations. This leads to consistent and uniform output. Standardization not only eliminates the possibility of employees engaging in alternative behaviours, but also removes the need for employees to consider alternatives.
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