5. DEPARTMENTATION BY CUSTOMER

DEPARTMENTATION BY CUSTOMER
Reviewed by Hammad Naziron Apr 01 2013
Rating: 5

DEPARTMENTATION BY CUSTOMER:

Departmentalization by customer groups jobs on the basis of a common set of needs or problems of specific customers. For instance, a plumbing firm may group its work according to whether it is serving private sector, public sector, government, or not for-profit organizations. A current departmentalization trend is to structure work

according to customer, using cross-functional teams. This group is chosen from

different functions to work together across various departments to interdependently

create new products or services. For example, a cross-functional team consisting of

managers from accounting, finance and marketing is created to prepare a technology

plan.

ORGANIZING CHART Of DEPARTMENTATION BY CUSTOMER

There is different difficult decision to be made in separating some type of customer

departments from product departments. Business owners and managers arrange

activities on the basis of customer requirements. Departmentation by customer can be

defined by figure

ADVANTAGES Of DEPARTMENTATION BY CUSTOMER

1- Departmentation by customer emphasis on customer needs.

2- It develops experience in customer area.

DISADVANTAGES Of DEPARTMENTATION BY CUSTOMER

1- It may be difficult to analysis customer demands.

2- It requires managers and staff expert in customer problems.

3- Customer groups may not always be clearly defined.