What are the bases for departmentalization?

Departmentalization can be based on several criteria, including function, product, geography, and customer. Functional departmentalization groups activities by specialized functions, such as marketing or finance. Product departmentalization organizes teams around specific products or product lines, while geographic departmentalization divides operations based on region. Customer departmentalization focuses on serving specific customer segments or markets. Each approach helps organizations streamline operations and enhance efficiency in meeting specific objectives.