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The organization of different departments or business units within a company is known as a corporate structure. Also called departmentalization, it refers to the process of grouping activities into departments such as engineering, manufacturing, management, marketing, development, etc. Specialists are created as a result of the division of labor, and they require coordination. Specialists are grouped together in departments to help with coordination. This process can be done on the basis of several elements. Functional departmentalization refers to the classification of activities based on the functions they fulfill (budget department). Activities categorized by product line refers to product departmentalization. Customer departmentalization refers to grouping operations based on common consumers or client kinds. Geographic departmentalization is defined as organizing activities based on their location. Organizing activities according to product, service, or consumer flow is defined as process departmentalization.
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