Product Departmentalization
Product departmentalization organizes work and workers into separate units responsible for producing particular product or services. Exhibit 8.4 shows the product departmentalization structure used by united technologies corporation, which is organized along seven different product lines: Carrier (heating, ventilating, and air-conditioning), Hamilton Sundstrand (aircraft electrical power generation and distribution systems) ,Otis (design, manufacture, installation, maintenance, and servicing of elevators and escalators), Pratt & Whitney (commercial and military jet aircraft engines), Sikorsky (military and commercial helicopters), Chubb (fire safety and security products and services), and UTC power (fuel cells and power systems).
One of the advantages of product departmentalization is that, like functional departmentalization, it allows managers and workers to specialize in one area of expertise. Unlike the narrow expertise and experiences in functional departmentalization, however managers and workers develop a broader set of experiences and expertise related to an entire product line. Likewise, product departmentalization makes it easier for top managers to assess work-unit performance.