The different situations faced by managers while deciding between product and geographical departmentalization-
Managing and proper utilization of man-power.
Best usage from provided resources to achieve desired goals.
The products they produce.
Who their customers are.
Where their customers are located.
Product Departmentalization
Advantages
Managers and workers are allowed to specialize in a particular area building vast set of proficiency.
Determining Work unit performance become easy for top managers.
It makes decision making faster.
Eg:- If We go to a hardware store and we go to Mechanical department and the employee is from Electronics department then he could not be able to help us much. Allocating resources to the right department will help in satisfying customer needs.
Disadvantages
Duplication of efforts is risked which may lead to negative effect on performance of company.
Coordination among various product departments may be difficult to achieve.
Geographical Departmentalization
Advantages
Requirements of different markets is fulfilled by companies varying by countries or cities.
Sending white collared employees to different places provide excellent training leads to company's success.
Disadvantages
It can lead to cloning of reserves.
Regulation of distant departments may be difficult.
The different situations faced by managers while deciding between product and geographical departmentalization-
Managing and proper utilization of man-power.
Best usage from provided resources to achieve desired goals.
The products they produce.
Who their customers are.
Where their customers are located.
Product Departmentalization
Advantages
Managers and workers are allowed to specialize in a particular area building vast set of proficiency.
Determining Work unit performance become easy for top managers.
It makes decision making faster.
Eg:- If We go to a hardware store and we...