Departmentalisation

How it is used

Use for the grouping principle or process; department is the resulting unit rather than the act of grouping.

Example sentences

1. Customer-based departmentalisation created separate teams for hospitals and retailers.

   The customer category determines where activities are grouped.

2. The consultants questioned whether geographic departmentalisation still suited the online business.

   The grouping basis is assessed against how the business now serves customers.

Common collocations

• functional departmentalisation
• geographic departmentalisation

Related terms

• org chartA diagram that shows how an organisation is structured, with boxes for roles or people and lines showing who reports to whom.
• restructuringA major change to how a company is organised, such as merging departments, removing management layers or reducing staff, usually to cut costs or support a new strategy.

More terms: Organisational Structure

• manager
• team leader
• report to
• direct report
• line manager
• senior management
• middle management
• hierarchy
• span of control
• matrix structure
• silo
• chain of command