Advantages Of Process Departmentation
Followings are the main benefits of process departmentation:
1. In process departmentation, there is proper division of work. So, it is effective form of departmentation.
2. Top level management is oriented towards the best result. So, there is proper operation.
3. Departmentation by process follows the principles of specialization.
4. There is clear authority and responsibility in each department.
5. This type of departmentation facilitates proper and optimum use of resources.
6. Because of specialization and division of work production process is effective in process departmentation.
Disadvantages Of Process Departmentation
Followings are the major drawbacks of process departmentation:
1. There is high chance of conflict in process departmentation..
2. This type of departmentation is only suitable for large manufacturing firms.
3. It is difficult to maintain effective coordination.
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4. Whole process may be affected due to problem in one process.
5. It is hard to maintain unity of command.
6. Departmentation by process is very costly.