What was your primary learning from reading below? Explain.

What is one question that remains as a result of the reading? Explain.

ADVANTAGES OF FUNCTIONAL
DEPARTMENTALIZATION
• Maintains the power and prestige of the
major functions
• Creates efficiency through the principles
of specialization
• Centralizes the organization’s expertise
• Permits tighter top-management control
of the functions
• Minimizes costly duplications of
personnel and equipment

DISADVANTAGES OF PRODUCT
DEPARTMENTALIZATION
• More personnel and material resources
are required
• Unnecessary duplication of resources
and equipment maybe caused
• Greater burden for top management to
establish effective coordination and
control