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Which one of the following is not an advantage in case of product-based departmentalization?
Question



Which one of the following is not an advantage in case of product-based departmentalization?

A.

It leads to continuous and undivided attention to the product,

B.

Requires less number of managerial personnel to be employed

C.

It enables top management to compare the performances of different products

D.

It motivates departmental head to improve his performance

Correct option is B

Product-based departmentalization is a common form of organizing a company in which the various functions are organized around specific products or product lines. Some of the advantages of product-based departmentalization include:
Advantages of product-based departmentalization
 Focus on specific products- It leads to continuous and undivided attention to the product.
 Faster decision-making- It motivates departmental head to improve his performance.
 Flexibility- It enables top management to compare the performances of different products.
 Improved accountability -It helps in increasing better coordination between the departments and increases accountability in them.
 Product-based departmentalization does not help in reducing a smaller number of managerial personnel in the departments.
Hence (b) option is not correct.

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