Functional Departmentalization
{"Image DocumentName": "Functional Departmentalization", "Image ImageDescription": "UNIT 6 \u2013 Organization Design and Culture. BUAD 230 C, Fall Functional Departmentalization. Advantages. Disadvantages. Work done by highly skilled specialists. Lowers costs through reduced duplication. Communication and coordination problems are lessened. Cross-department coordination can be difficult. May lead to slower decision making. Produces managers with narrow experiences. Functional departmentalization has some advantages. First, it allows work to be done by highly qualified specialists. While the accountants in the accounting department take responsibility for producing accurate revenue and expense figures, the engineers in research and development can focus their efforts on designing a product that is reliable and simple to manufacture. Second, it lowers costs by reducing duplication. When the engineers in research and development come up with that fantastic new product, they don t have to worry about creating an aggressive advertising campaign to sell it. That task belongs to the advertising experts and sales representatives in marketing. Third, with everyone in the same department having similar work experience or training, communication and coordination are less problematic for departmental managers. However, functional departmentalization has a number of disadvantages, too. To start, cross-department coordination can be difficult. Managers and employees are often more interested in doing what s right for their function than in doing what s right for the entire organization. A good example is the traditional conflict between marketing and manufacturing. Marketing typically pushes for spending more money to make more products with more accessories and capabilities to meet customer needs. By contrast, manufacturing pushes for fewer products with simpler designs, so that manufacturing facilities can ship finished products on time and keep costs within expense budgets. As companies grow, functional departmentalization may also lead to slower decision-making, and produce managers and workers with narrow experience and expertise. Copyright \u00a9 2008 by Dr. Eliot S. Elfner, St. Norbert College.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}