Advantages Of Product Departmentation
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.
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.
Disadvantages Of Product Departmentation
Disadvantages Of Product Departmentation
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.
Also Read
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
