3- DEPARTMENTATION BY FUNCTION

DEPARTMENTATION BY FUNCTION
Reviewed by Hammad Naziron Apr 01 2013
Rating: 5

DEPARTMENTATION BY FUNCTION

DEPARTMENTATION BY FUNCTION Introduction:

is grouping activities on the basis on function of an enterprise. The basic enterprise functions are production, selling, and financing functional departmentation is bases for organizing activities and in organizational structure. It organizes by function to be performed. The function reflects the nature of the business. The advantage of the DEPARTMENTATION BY FUNCTION is obtaining efficiencies from consoliding similar specialties and people with common skills, knowledge and orientations together in common units.

ADVANTAGES Of the DEPARTMENTATION BY FUNCTION

1- It is logical reflection of function.

2- Maintains power of major functions.

3- Simplifies training.

DISADVANTAGES Of the DEPARTMENTATION BY FUNCTION

1- De-emphasis of overall company objectives.

2- Reduces coordination between function.

3- Slow adoption to change in environment.