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Product

TEAM ORGANIZATION | DELEGATION PROCESS, AUTHORITY, AND ACCOUNTABILITY | TECHNIQUES OF DELEGATION | PARITY OF AUTHORITY AND RESPONSIBILITY | CENTRALIZATION VERSUS DECENTRALIZATION | MAJOR TYPES OF ORGANIZATIONAL STRUCTURE | CONTINGENCY APPROACH | Exhibit 1 | KNOW THE BASICS |


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Whenever specialized knowledge of certain products or services is needed, departmentalization by product may be best. This usually occurs in large diversified companies. This form of departmentalization is illustrated in Figure 11-3.

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MARKET

When a need exists to provide better service to different types of markets, departmentalization by market may be the appropriate form. An example of a business serving nonprofit markets, which uses the market form of departmentalization, is shown in Figure 11-4.

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