EXERCISE 1.

DEPARTMENTALIZATION
1. The types of DEPARTMENTALIZATION in the attached file:
- Functional
- Product
- Geographic
- Process
- Customers
- Cross functional
2. Product, Geographic, Customers, and Cross functional are suitable for big
organization. Because they have wide product ranges or branches or customers and
many projects or SBUs.
3. Functional is the suitable for small organizations. Because:
+ SMEs have limited capital and number of employees.
+ They do not have wide product ranges or branches.
+ They can have efficiency from putting together similar specialties and people.
+ They can coordinate well within functional areas.
+ They can have in-depth specialization.