Home → Terms → Customer departmentalization Definition (1): Customer departmentalization groups activities and resources in response to the needs of specific customer groups. Definition (2): “Customer departmentalization - Grouping activities on the basis of common customers or types of customers.” Jobs can be grouped based on the customer type served by the company or organization. The concept is that
customers in every department have a common type of needs and problems that may best be solved by specialists. Definition (3): When effectively serving various customer groups is greatly emphasized, this organizational structure or form is applied or used. For example, full-time and part-time students of graduate and post-graduate business programs in colleges and universities generally are different in personal needs and demographic profile. Usually, full-time students attend classes in day shifts and part-time students attend classes in evening or night shifts. The retail and wholesale public is so different in various industries like the customers of the government and non-government sectors. Customer departmentalization has the following advantages:
14. Which of the following best describes a functional structure?A. It is an organizational structure where boundaries between jobs continually shift and people pitch in wherevertheir contributions are needed.B. It is an organizational structure where work and resources are assigned to departments responsible for all theactivities related to producing and delivering a particular product.C. It is an organizational structure where an organization is departmentalized according to the type of customerserved.D.It is an organizational structure where personnel and other resources are grouped according to the types ofwork they carry out.Feedback: A functional structure is an organizational structure where personnel and other resources are groupedaccording to the types of work they carry out. This structure is well-suited to centralized decision making andefficiency through economies of scale and specialization.AACSB: AnalyticAccessibility: Keyboard NavigationBloom's: UnderstandDifficulty: 2 MediumLearning Objective: 07-02: Identify basic ways in which organizations are structured.Topic: The Structure of the Organization 15. A company with a _____ structure has an organization chart that reflects its grouping of personnel andresources according to the work that they do. AACSB: AnalyticAccessibility: Keyboard NavigationBloom's: RememberDifficulty: 1 EasyLearning Objective: 07-02: Identify basic ways in which organizations are structured.Topic: The Structure of the Organization  16. What is true of the functional structure of an organization?AACSB: AnalyticAccessibility: Keyboard NavigationBloom's: UnderstandDifficulty: 2 MediumLearning Objective: 07-02: Identify basic ways in which organizations are structured.Topic: The Structure of the Organization Customer departmentalization is where the organization’s activities are ready to respond to and interact with specific customers or customer groups. This organizational form is used when great emphasis is placed on effectively serving different customer types. For instance, full-time day students and part-time night students of graduate business programs in universities usually are different in demographic profile and personal needs. The wholesale and retail public are very different in many industries, as our government and private sector customers. For instance, banks may be departmentalized according to the markets illustrated in the following image; Advantages of customer departmentalization
Disadvantages of customer departmentalization
What of the following correctly describes departmentalization?Which of the following BEST describes departmentalization? is authority based on expertise that usually involves counseling and advising line managers.
Which of the following defines product departmentalization?Which of the following defines product departmentalization? The process of dividing an organization according to specific products or services being created.
What are the 4 major forms of departmentalization?The primary forms of departmentalization are by function, process, product, market, customer, geographic area, and sometimes matrix (also called project organization).
What is the best description of an organization?An organization or organisation (Commonwealth English; see spelling differences), is an entity—such as a company, an institution, or an association—comprising one or more people and having a particular purpose.
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Which of the following is the best description of customer departmentalization?
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