After reading this article you will learn about the merits and demerits of network organisation. Merits of Network Organisation: Network organisation has the following merits: 1. It is very wide in scope. It can link subsidiaries across the world with the head office. Though subsidiaries are linked with the head office, most of the decisions are taken by subsidiaries at [...]
This article will help you to learn about the diffrerence between functional and divisional departmentation. Difference between Functional and Divisional Departmentation Difference - Functional Departmentmentation 1. Basis: In functional departmentation, departments are created on the basis of functional areas (production, marketing etc.) 2. Specialisation: It is with respect to activities of all products. Production activities of all products (one or [...]
This article throws light upon the eight main factors to be considered while choosing a basis of departmentation. The factors are: 1. Work and Process 2. Specialisation 3. Capabilities of Workers 4. Technology 5. Competitors' Approach 6. Co-Ordination and Control 7. Environment 8. Optimum Utilisation of Resources. Factor # 1. Work and Process: Departments should be created on the basis [...]