6. ADVANTAGES DISADVANTAGES
SIMPLICITY OVERALL LOAD ON TOP
CLEAR DIVISION OF EXECUTIVES IS MORE
AUTHORITY& LIMITED TO VERY SMALL
RESPONSIBILITY CONCERNS
CLEAR CHANNEL OF NEGLECTS SPECIALISTS
COMMUNICATION INDIVIDUAL EXECUTIVES
FLEXIBLE ARE SUPPOSED TO DO
QUICK DECISIONS & DIFFERENT DUTIES
SPEEDY ACTION DICTATORIAL WAY OF
WORKING
8. ADVANTAGES DISADVANTAGES
USE SPECIALISTS DIFFICULT TO MAINTAIN
QUALITY OF WORK IS DISCIPLINE
IMPROVED NUMBER OF EXECUTIVES
WASTAGES CAN BE OF SAME RANK
REDUCED CO-ORDINATION IS
RELIEVES PRESSURE OF DIFFICULT
TOP EXECUTIVES HIGH SALARY TO EXPERTS
10. 1) PRODUCT STRUCTURE
• Allows functional managers to specialize
in one product area
• Division managers become experts in their
area
• Removes need for direct supervision of
division by corporate managers
• Divisional management improves the use
of resources
11. 2) GEOGRAPHIC STRUCTURE
Divisions are broken down by geographic
location
Managers locate different divisions in
each of the world regions where the
organization operates.
Generally, occurs when managers are
pursuing a multi-domestic strategy
12. 3) MARKET STRUCTURE
Groups divisions according to the
particular kinds of customers they serve
Allows managers to be responsive to the
needs of their customers and act flexibly
in making decisions in response to
customers’ changing needs
14. ADVANTAGES DISADVANTAGES
MORE FLEXIBLE THAN VIOLATES UNITY OF
TRADITIONAL COMMAND
FUNCTIONAL CO-ORDINATION IS VERY
ORGANISATION DIFFICULT
MORE STRESS IS GIVEN TO PROJECT MANAGER
AUTHORITY OF DOESN`T HAVE LINE OF
KNOWLEDGE THAN RANK AUTHORITY
