Which of the following is the advantages of departmentalization by business func
ID: 430332 • Letter: W
Question
Which of the following is the advantages of departmentalization by business function?
better communication with other employees in other functions.
a broadening of focus for the work team.
automatic coordination with customers.
communication and cooperation within the group.
increased interaction with other parts of the organization.
a.better communication with other employees in other functions.
b.a broadening of focus for the work team.
c.automatic coordination with customers.
d.communication and cooperation within the group.
e.increased interaction with other parts of the organization.
Explanation / Answer
By introduction of departments in an organisation the following are the benefits derived:
Broadening focus for the work team: With a defined department and scope of work for a business function, it is imperative that the team focusses on their KPIs. With departments in existence the employees are more focussed and work towards acheivement of a larger goal for the work team. Foe Example: The finance department aims to bring in invoice processing efficiency and also the increased period end closure. The focus is higher as they have a defined scope and KPI. If the same gets merged with the other fucntions for example HR, then the focus will be diluted as peiod end closure will get tied to emplyee performance both of which could be conflicting objectives.
Communication and coordination within the group: Within the same department the coordination is higher as ll resources are working towards the achievement of the larger objective for the fucntion. Ther is stronger coordination as their are interdepdencies for meeting the key peformance indicators and fulfilling the key responsibility areas.
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