Functional Departmentalization:
Like every organization, Taj performs certain jobs in order do its work. For example, key functions of Taj include production, purchasing, marketing, accounting, and personnel. Using such functions as the basis for structuring Taj, in some instances, Taj has the advantage of efficiency. Grouping jobs that require the same knowledge, skills, and resources allows Taj to do efficiently and promotes the development of greater expertise.

A disadvantage of functional groupings is that people with the same skills and knowledge sometimes develop a narrow departmental focus and have difficulty appreciating any other view of what is important to Taj; in this case, Taj’s goals may be sacrificed in favor of departmental goals.

In addition, coordination of work across functional boundaries can become a difficult management challenge, especially as Taj intends to grow in size and spreads to multiple geographical locations.

Geographic Departmentalization:
Taj has an intension to spread its operations over a wide area. For that it seeks advantages in organizing along geographic lines so that all the activities performed in a region are managed together. In Taj, simple physical separation makes centralized coordination more difficult. Also, important characteristics of a region may make it advantageous to promote a local focus.

For example, marketing a product in Western Europe or in Middle East may have different requirements than marketing the same product in local markets. In orders to market products globally sometimes Taj adopts a geographic structure.

In addition, experience gained in a regional division has been often proved excellent training for Taj’s management at higher levels.

Product Departmentalization:
Taj mostly organizes its structure according to product. All the activities necessary to produce and market a product or group of similar products are grouped together. In such an arrangement, the top manager of the product group typically has considerable autonomy over the operation. The advantage of this type of structure is that the personnel in the group can focus on the particular needs of their product line and become experts in its development, production, and distribution.

A disadvantage, at least in terms of larger organizations, is the duplication of resources. Each product group requires most of the functional areas such as finance, marketing, production, and other functions. The top leadership of Taj has to decide how much redundancy it can afford.

Customer/Market Departmentalization:
Taj often finds it advantageous to organize according to the types of customers it serves. For example, when Taj sells to consumers, government clients, large businesses, and small businesses, it decides to base its primary divisions on these different markets. Its personnel can then become proficient in meeting the needs of these different customers.

In the same way, when Taj does activities such as accounting or consulting may group its personnel according to these types of customers.