Organizational structure departmentalization

Centralization sometimes is confused with spatial differentiation. A hospital pharmacy that has satellite pharmacies located throughout the hospital is often referred to as being decentralized. However, it is decentralized in location only if decision making concerning the satellites still rests at one centralized point in the organization. Other organizational structure principles include division of labor, span of control, unity of command, and departmentalization. 

The first step in a hazard survey program is to formalize the lines of communication. A primary purpose of this communication network is to get critical hazard information to decision makers as quickly as possible so that action can be taken to avert an exposure or accident. Traditional communication routes in most companies do not allow for quick communication between workers and decision makers, and thus serious hazards may not be corrected before an exposure or accident occurs. Each company has an established organizational structure that can be used to set up a formalized communication network. For instance, most companies are broken into departments or work units. These can serve as the primary segments within which workers report hazards. These hazards can be dealt with at the departmental level or communicated to higher-level decision makers for action. 

Functional layout—A facility configuration in which operations of a similar nature or function are grouped together an organizational structure based on departmental specialty (e.g., saw, lathe, mill, heat treat, and press). 

Within firms, the hybrid or matrix concept has become increasingly fashionable in pharmaceutical companies. Project teams are created that comprise membership from departments with specific technical, organizational, and management expertise. Such teams form and dissolve as the need arises. In principle, advantages of the matrix structure include cross-disciplinary enrichment of the team s activities and crossfertilization of expertise. Disadvantages of the matrix system include a relative lack of professional development for specific technical expertise for each team member, the potential for cross-departmental rivalry, and competition for each team member s time based on the needs of the interdisciplinary project versus those of his/her technical "home" department (Verona and Ravasi 2003). These multi-functional teams have the potential to increase bureaucracy and delay innovation. At least on a small scale, it may be better to solve a problem with two people rather than with ten. 

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