Advantages Of Functional Departmentation
Following are the major benefits or advantages of departmentation by function:
1. Simplicity
Functional departmentation is simple and common form of departmentation. It is very easy to establish and operate.
2. Specialization
Functional departmentation follows the principle of specialization. Special knowledge and skill helps high level operation of the organizational functions.
3. Better Coordination
Functional departmentation facilitates better coordination among departments, different functions and employees.
4. Optimum Utilization Of Resources
Functional departmentation focuses on the optimum utilization of both human and non-human resources. This ensures positive outcome to the organization.
Disadvantages Of Functional Departmentation
Functional Departmentation suffers from the following disadvantages:
1. Conflict
In functional departmentation, there is very high chance of conflict among departments and other functional areas.
Because of numbers of specialists and experts and many departments, decision making process is slow in this type of departmentation.
3. High Supervision Cost
There are many supervisors in this type of organization. So, supervision costs is very high.
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4. Lack Of Innovation And Creativity
Functional departmentation emphasis on high level speed production by the help pf specialists and skilled employees. It emphasis on mass production and expansion. But it ignores innovation and creativity.
5. Difficult To Monitor
It is very difficult to monitor performance in this type of departmentation.
