This means that companies featuring functional departmentalization cannot adapt quickly and aren't as flexible as other structural setups. Each team is empowered to meet its goal, taking responsibility for results. The makeup is very high quality at very affordable prices. The company gets the advantage of their expertise and company knowledge over time. You will better be able to understand demand, and also how to market what you sell. It has the potential disadvantage of inflexibility, because any issues that involve more than one skill set require communication and cooperation between departments.
. After the objectives of an organization are established, the functions that must be performed are determined. Quick and wise decision possible Since decision-making authority is as near as possible to the place where action takes place, those having this authority can make reasonably accurate, wiser and timely decisions because they are well aware of the realities of the situation. So, the accounting department may be upset that its request for an additional headcount is denied, but the company financial results point to a need for additional sales people rather than accountants. For instance, department of a textile industry may be formed into ginning, spinning, weaving, dyeing and finishing department. Decisions and actions are delayed. Departmentalization is the process of grouping specialized jobs into logical units Griffin, 2013.
Since the unit doesn't have an overview of the entire company, it may focus attention on goals that it believes are important but which are not priorities for top management. They are allowed to take part in planning, decision making, implementation of strategies, etc. Wise leadership creates and changes a company's structure according to management's intended goals. Workers must be trained to take on challenges. The managers are paid high salaries. Excellent communication because they have a very specific requirement and output.
All of 3M Crops products operate under different divisions Griffin, 2013. The customers get quick and efficient service. In the matrix structure, staffers have dual reporting relationships, generally to both a functional manager and a product manager. There are many delays and distortion in communication. Limited resources can be another issue. Then a white gelatinous ppt is formed which indicates the presence of Aluminum. These general benefits may include more freedom of action for individuals, more widespread opportunity for constructive individual participation, less social stratification within the business.
This is made to maintain working efficiency of each process and to economize productivity. Product decision normally base on brand name, functionality, styling, quality, safety, packaging, repairs and support, warranty, accessories and services. However, when you scale upward and begin to consider territories, states, regions, and countries, a centralized operation can prove inefficient. Though there are a lot more disadvantages, these 2 advantages mos … t often outweigh them. In departmentalization, works are divided into different departments on the basis of their nature and responsibility is entrusted to skilled and efficient manager.
The matrix structure blends the functional and divisional structures, gaining the advantages of both. The advantage of this method is that it is a very simple, uncomplicated approach that is easy to control and manage. Such myopia makes it difficult for managers to marshal subordinates for the company's vision. Responsibility for profits is at the top only. In such departmentalization, the local customers are served by the divisional manager while the plans and policies are formulated at the head offices. Below The Line marketing activities Below The Line marketing is unconventional in nature, done at micro level and forms part of non-media communication. Advantages include efficiency and clear lines of authority, communication and accountability.
If you can't afford to lose any of your resources, mass production wouldn't suit you. Each individual in the same department will acquire the same work experiences or training, communication and co-ordinating, thereby reducing problem for management. In few instances arts any of these patterns used in pure form. Generally, hospitals, hotels, telecommunication and other public utility organization which work around the clock from departments on the basis of time shift such as day, evening and night shifts. On the other hand, a structure that considers geography at its foundation, sets up something akin to a company-within-a-company. Advantages of Decentralization Decentralization of authority has certain advantages, such as: 1. Follow principle of occupational specialization.
Each person belongs to a functional department such as production, reporting to a boss above. In other circumstances, the functional structure has disadvantages. Therefore, it facilitates to measure the managerial as well as operational result and contribution of each product line to whole organization. These departments can be easily supervised and controlled. Compatible employees because of similar training and expertise 8. The team structure groups people according to a common objective.