TYPES OF DEPARTMENTALISATION

Function
Functional departmentalization in a restaurant could operate by separation of sales and marketing
versus operations. Operations in the restaurant context apply to the preparation of food, while sales
would apply to the serving of customers. In this scenario, management may have difficulty deciding
where to include staff that makes and serves drinks at the restaurants bar, because they are involved in
both activities.

Product
The departmentalization according to product type could work in a licensed restaurant, by separating
the activities and costs related to the preparation and serving of food from those that applied to
preparing and serving drinks. In this type of departmentalization, the bar becomes a separate
department from the dining area, a logical method of categorization in this industry.

Chain of Command
Chain of command departmentalization works when the restaurant is large enough to require more than
one management division. For example, if a management role for one or more people exists on the
same level as another management role that oversees different staff or customer groups, such as the
operations and the finance, then these can be said to be departmentalized by chain of command.

Customer
Customer departmentalization works by dividing the organization around the different types of
customers. In a restaurant environment, this could take the form of individual customers versus catering
for corporate clients and group events. One group of staff may handle the day-to-day operations of the
restaurant, while a separate group manages the catering arm of the company, whether on the premises
or outside. Departmentalization like this would effectively also be functional and possibly chain-ofcommand departmentalization at the same time.

Combined Departmentalization
Depending on the size of a restaurant, it may use two or more types of departmentalization. A chain
may split its operation along the lines of both product and chain of command by having a food
department and a beverage department, with food reporting to the chef while beverage reports to the
licensee. A smaller restaurant may use functional departmentalization, such as kitchen operations
versus customer service, and combine this with process departmentalization. This would result in
operational kitchen staff already defined by function being further departmentalized into preparation of
ingredients versus actual cooking.