Question

Advantages and disadvantages of the various forms of departmentation

Answer 1

Departmentalization is the dividing of organizational functions into separate units.Departmentalization by function enables employees to specialize and work together efficiently.

 
ADVANTAGES:Employees can develop skills in depth and can progress within a department as they master those skills.
The company can achieve economies of scale in that it can centralize all the resources .
here’s good coordination within the function, and top management can easily direct and control various departments activities.


DISADVANTAGES:.There may be a lack of communication among the different departments.
The company’s response to external changes may be slow.
People may not be trained to take different managerial responsibilities.