The correct answer is D. Teams. Contemporary approaches to structural design in departmentalization often emphasize the use of teams as a means of organizing and optimizing work processes within an organization.

This approach differs from more traditional and functionally-oriented departmentalization methods. Let’s explore this in detail and then discuss why the other options are not as suitable.

D. Teams (Correct Answer):

The use of teams as a contemporary approach to structural design in departmentalization reflects a shift towards a more collaborative and flexible organizational structure. In this approach, work is organized around cross-functional teams that bring together individuals with diverse skills and expertise to work on specific projects or tasks.

These teams may be temporary or ongoing, depending on the nature of the work. The team-based approach offers several advantages, including increased agility, better problem-solving capabilities, and improved communication.

Contemporary organizations recognize that many complex tasks and projects require input from multiple departments and functions. By using teams, organizations can break down traditional departmental silos and encourage employees to collaborate across departments to achieve common goals.

Team-based departmentalization is particularly well-suited for dynamic and rapidly changing industries where responsiveness and adaptability are essential.

For example, in software development, organizations often use cross-functional teams that include software engineers, designers, quality assurance experts, and product managers to work on a specific project. This team-based approach allows for faster development cycles and better alignment with customer needs.

Now, let’s examine why the other options are not as suitable:

A. Traditional Divisions:

Traditional divisions typically involve organizing departments based on functions, such as finance, marketing, production, and human resources. While these traditional divisions are still used in many organizations, they may not be as agile or adaptable as team-based approaches.

Traditional divisions can lead to silos where different departments work independently, which may hinder collaboration and problem-solving across the organization.

B. Functional:

Functional departmentalization involves organizing work units based on the specific functions or tasks they perform, such as marketing, accounting, or production.

This approach is more conventional and hierarchical and may not be as conducive to the collaboration and flexibility that team-based departmentalization offers. Functional departmentalization can result in a more structured and bureaucratic organizational hierarchy.

C. Geographic-Based:

Geographic-based departmentalization is used when organizations have multiple locations or operate in different regions or countries. This approach involves organizing departments or units based on their geographic location.

While this method is useful for managing operations in diverse locations, it is not inherently a contemporary approach to structural design like team-based departmentalization.

E. Divisional:

Divisional departmentalization involves organizing departments or units based on specific product lines, services, or markets. It is often used in larger organizations that have multiple business units.

While divisional departmentalization can provide focus and accountability for specific product lines or markets, it does not necessarily promote the same level of cross-functional collaboration and flexibility as team-based departmentalization.

In conclusion, the correct answer is D. Teams because the use of cross-functional teams is a contemporary approach to structural design in departmentalization. This approach is valued for its ability to break down traditional silos, encourage collaboration, and improve agility in responding to changing business conditions.

While traditional departmentalization methods like functional, geographic-based, and divisional structures still have their place, the team-based approach is gaining prominence in many modern organizations seeking to enhance their adaptability and problem-solving capabilities.

Understanding these different approaches to departmentalization is crucial for organizational design and effectiveness in today’s dynamic business environment.