Departmentalization is the logical grouping of business, Ask an Expert

Management Studies

Departmentalization is the logical grouping of business units to operate efficiently. An organization can split its departments in many ways. Consider a company that develops software. The company develops office suite software, social media software, and video game software and currently uses functional departmentalization as a basis for its organization structure. How might this organizational structure change if the software company operated globally?

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Operation Management, Management Studies

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