What is departmentalization?
The six key elements of an organizational structure

Grouping specialized activities into departments within the organization requires coordination, which is why each department is headed by a manager.

A department is characterized by the functions it performs, and the products or services it offers. Indeed, one of the most widespread methods is to group activities according to the functions performed: engineering, purchasing, manufacturing, assembly, quality, etc.

The main advantage is the economies of scale achieved by placing employees with common skills and specializations in a single unit: the department.

Another approach is to group activities by type of product or service. In this case, we speak of departmentalization by function.

It should be noted that a combination of the two types can be proposed; for example, within the engineering...