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Questions and Answers
What is a disadvantage of departmentation by Functions?
What is a disadvantage of departmentation by Functions?
- It follows principles of occupational specialization
- It simplifies training
- It maintains power and prestige of major functions
- It de-emphasizes overall company objectives (correct)
What does departmentation by Functions allow for?
What does departmentation by Functions allow for?
- A logical reflection of functions (correct)
- Tight control at the top
- Adaptation to change in the environment
- Responsibility for profit
What is not generally included in org charts?
What is not generally included in org charts?
- Basic designations (correct)
- Power and prestige of major functions
- Occupational specialization
- Overall company objectives
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Study Notes
- There is no single best form of departmentation, it will depend on the given situation and the manager's belief.
- Departmentation by Functions groups activities according to the functions of an enterprise.
- Basic designations may not appear on org charts, this is because no generally accepted terminology exists.
- Departmentation by Functions allows for a logical reflection of functions and maintains power and prestige of major functions.
- It follows principles of occupational specialization and simplifies training.
- Departmentation by Functions furnishes means of tight control at the top.
- Disadvantages of departmentation by Functions include de-emphasizing overall company objectives and overspecialization and narrowness of view points of key personnel.
- Responsibility for profit is at the top only, which can slow adaptation to change in the environment.
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