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Departmentation by product and services has both advantages and disadvantages. These merits and demerits are clearly described below. Major benefits of departmentation by product and services are as follows: 1. Product departmentation follow the principle of specialization in a product or services. It ensures better quality of the product. 2. Because of specialization it ensures optimum utilization of human and non human resources. 3. Large manufacturing firms can be benefited from product departmentation. 4. Departmentation by product and service helps in evaluating the performance of each department. This helps to control organization easily. 5. Top level manager has enough time for planning and decision making because all departments are handled by departmental managers. 6. Production departmentation is flexible in nature. It is easy to add new product line if needed. 7. Product departmentation helps to improve skill and talent of managers.
Major drawbacks of departmentation by products and services are as follows: 1. There is high chance of conflict between different departments. 2. Due to low demand, resources may not be fully utilized. 3. Top level management has to face difficulty to control production division. 4. Departmental managers and supervisors may ignore overall organizational objectives because they focus only on their department. 5. It is very costly and not suitable for small and medium sized firms What is an advantage of using product departmentalization?Advantages of Departmentalization By Product/Service
It brings specialization in a product or service which makes optimum utilization of human resources. Each product can be focused on its productivity and profitability. All activities associated with each product can easily be integrated and coordinated.
What is the advantage of using product departmentalization quizlet?One of the advantages of product departmentalization is that, like functional departmentalization, it allows managers and workers to specialize in one area of expertise.
Which of the following is an advantage of customer departmentalization?Clear advantages to customer departmentalization include greater customer focus, definitive identification of key customers, greater understanding of customer needs and managers become customer advocates.
Which is one advantage of using the functional departmentalization approach?Specialization: One primary advantage of functional departmentalization is that this model can allow for a higher extent of specialization and more advanced expertise in a particular field than other organizational structures.
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Which one of the following is an advantage of using product departmentalization?
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