Advantages Of Departmentation By Territory
Territory-based departmentation has the following advantages:
1. Territory-based departmentation helps to expand business operation into different geographical location.
2. The regional staffs get opportunity to improve their skills and experience.
3. Local people can get job opportunity by departmentation by territory.
4. In this type of organization, coordination can be established between the organization, employees and locals.
5. Territory-based departmentation helps to fulfill local demand.
7. Departmentation by territory adopt the environmental changes.
8. This type of departmentation facilitates face-to-face communication which helps to be familiar with local people.
Disadvantages Of Departmentation By Territory
Disadvantages Of Departmentation By Territory
Territory-based departmentation suffers from the following drawbacks:
1. Departmentation by territory is more costly than other forms if departmentation. Although the cost of production is low, administrative expenses and other expenses are very high.
2. It needs more people with managerial skills.
3. There is a problem of effective control in this type of departmentation.
4.There may exists the chance of integration of different regional offices in this type of departmentation.
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5. This is complex form of departmentation.
6. Territory-based departmentation suffers from the possibility of duplication
