Functional Departmentalisation Advantages And Disadvantages
Introduction into Departmentalisation I t becomes impossible for an owner-manager to supervise all the employees as a business reaches a certain size, therefore it is essential to create new managementl positions. These positions will be based on a logical grouping, namely the manageable size and their function or criteria. These subdivisions are also known as departments. Organisations or businesses are not restricted by using only one of the departmentalisation structures within their businesses. Most organisations are likely to use two or more types of departmentalisation simultaneously. These divisions allow employees to specialise in these fields, therefore allowing them to contribute to the overall business performance. Organisational …show more content…
This form of departmentalisation may sometimes create problems if individuals within these groups are more concerned with their own specialized area than with the overall business. There are advantages, but also disadvantages within a Functional departmentalisation: Advantages: • Functional departmentalisation represents a much more natural and logical manner of grouping diverse functions of an organisation in groups. • Such grouping guarantees specialisation. When similar activities are grouped together, specialized skill and knowledge are acquired. This can be used in running the business more efficiently by utilizing manpower and resources better. • It facilitates coordination within the department • Functional Departmentalisation is a time-tested system and is easily vindicated by management. • Direct and sufficient attention to the essential performance guarantees the availability and efficient operation of outstanding abilities Disadvantages: • In Functional departmentalisations there is a tendency toward centralisation which causes delay in making decisions and in the flow of …show more content…
For example a business using the functional departmentalisation would tend to group together employees that are carrying out a particular function such as book-keeping that differs significantly from the task performed by other staff members. Product Departmentalisation Product Departmentalisation is designed so that all activities concerned with the production of a particular product or service are grouped together. This structure organises staff members according on which product line or set of services they work with. Therefore specialists related with a specific product are grouped together. Every product line has its very own department, and every department has specialists in all of the functions, such as accounting, marketing, manufacturing and human resources. Thus it is safe to say that each department almost run as a separate company complete with all the essential functions although sometimes Senior management controls some functional areas for example financial
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580 Words | 3 PagesThis category is not found in all businesses as it is not always essential. Large businesses tend to have an entire division for operations and it habitually has its own hierarchy to make sure that operations are processed appropriately and in a formal order. Smaller businesses tend to have a senior manager or a small management team who are in control of the business’ operations. Personnel - this category is the indispensable area involved in almost every business. Personnel are responsible for ‘carrying’ the business as they are required for tasks such as directly selling products to customers.
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Case Study Dynacorp
1336 Words | 6 PagesIntroduction A company’s success is measured by how well it is structured and organized in order to adapt to the changes in environment as well as the changes within itself such as the company’s scale, employees, product scope, etc. Having a suitable, well-structured organizational frame will not only increase the chance of being success but also prolong the company’s lifespan compared to an un-structured one. It is important to note that an organization’s structure needs to fit in with the current situation and does not necessarily required remain unchanged over time. Taking Dynacorp as an example, even though its functional structure contributed to the vast growth of the company at the start, its limitation in dealing with the changes within
Rogers Communications Inc.: Organizational Structure
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Characteristics Of The Federal Bureaucracy
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489 Words | 2 PagesThe United States Government can be described in two ways. There is unified government, which appears when the President and both houses of congress share the same party. Divided government is the opposite, it occurs when one party controls the white house, and another party controls one or more houses of Congress. A unified government should seem to be more productive because enacting laws would be much easier. A bill has to pass through both houses of congress as well as the president before it can be an official law.
Advantages And Disadvantages Of Multi Agency
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Case Study: Target Corporation
882 Words | 4 PagesProcess and tools Target Corporation uses tolls and process for product safety and quality assurance. The company assesses a program for risk –based product safety and quality at every stage in the product life cycle, from development through the life of brand product. Target global team implement a program across 36 countries and 2228 factories producing target product, during the process will require independent third-party testing to validate safety and quality before the guests purchase product. the vendor in the company are expected to employ best practices, including clearly defined and well-documented manufacturing and quality processes including staff training , and record keeping. What does the TC required to do the job?
Bureaucracy: The Pros And Cons Of A Bureaucratic Government
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920 Words | 4 PagesHigh degree of responsiveness of between various functional head and CEO. 2. Inter department decision making is smooth i.e. the functional heads can make decision based on other functions smoothly. 3. Centralized controlling system.
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1276 Words | 6 PagesThey are answerable to the top management for the operations of their department. They are devoted to the directional and organizational
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