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Q: What are the disadvantages of product based organization structure?
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Advantages and disadvantages of divisional organisational structure?

Divisional structure: Divide the organization according to the type of work, region, product and so on. Large organization may break down into Rail, water, road and building division. Divisional structure divides the employees based on the product/customer segment/geographical location. For example, each division is responsible for certain product and has its own resources such as finance, marketing, equipments, maintenance..etc. Advantages this structures allows for flexibility and quick response to environmental changes. It also enhances innovation and differentioan strategies. Disadvantages: This structure results in duplication of resources because, for example we need to have equipment , for each division. Obviously, it does not support the exchange of knowledge between people working in the same profession because part of them are working in one division and the others are working in other divisions Divisional structure:Divide the organization according to the type of work, region, product and so on. Large organization may break down into Rail, water, road and building division. Divisional structure divides the employees based on the product/customer segment/geographical location. For example, each division is responsible for certain product and has its own resources such as finance, marketing, equipments, maintenance..etc. Advantages this structures allows for flexibility and quick response to environmental changes. It also enhances innovation and differentioan strategies. Disadvantages: This structure results in duplication of resources because, for example we need to have equipment , for each division. Obviously, it does not support the exchange of knowledge between people working in the same profession because part of them are working in one division and the others are working in other divisions


Would a project management organization be different from an organization for regular manufacturing in what ways?

The approach may vary based on their product and market focus.


What is the best tool for product based planning?

Probably the best tool supporting product based planning technique (PRINCE2 technique) is P2ware Planner, http://www.p2ware.com. It supports * Product Breakdown Structure (PBS) * Product Flow Diagram (PFD) * automatic generation of PFD based on PBS * all changes are reflected on other diagrams (Gantt chart, network diagram) See related links.


What are the advantages of product based organisation structure?

Four advantages of a product based organisation (briefly listed) (i) This structure gives focus on individual products, which may be especially appropriate if different products have different problems and concerns. (ii) Each group can be run as a separate profit centre. This way, healthy competition and rivalry can develop between 'teams' which can help motivation and productivity. (iii) It is also flexible in that poorly performing groups can be closed down without too much disruption to the rest of the organization. (iv) These smaller profit centres allow for rapid decision making and greater independence In addition, using a product organization structure is most common in companies such as retail stores. These organizations will separate out their products by group, such as apparel, appliances, food or electronics. This helps owners and managers run their operations more efficiently (so thats probably another advantage; efficiency


Is functional structure the same thing as divisional structure?

functional structure arises when people with similar occupational specialities come together to form formal groups. on the other hand, divisional structure separates the organisation based on their diverse occupational specialities in formal groups by certain characteristics such as similar product/services, customers, geographical locations etc

Related questions

What are the advantages and disadvantages of product structure?

Some of the advantages and disadvantages of product structure are that product structure enables companies to remain flexible in the business environment. Businesses are able to remove or expand specific structures as necessary, but it can prevent companies from achieving broad based goals as each structured unit is operated on its own.


What is divisional organizational structure?

A divisional organization relies on product departmentalization.The firm creats product-based divisions, each of which may then be managed as a separate enterprise.


What impact does globalization have on organization structure?

Globalization affects a company's structure because the structure determines who reports to whom. When a company expands internationally, it will structure the organization based on management's span of control.


What is organ structure?

Divisional organisation is the process of creating at the primary level a series of relatively autonomous units, usually based on product groupings


Advantages and disadvantages of divisional organisational structure?

Divisional structure: Divide the organization according to the type of work, region, product and so on. Large organization may break down into Rail, water, road and building division. Divisional structure divides the employees based on the product/customer segment/geographical location. For example, each division is responsible for certain product and has its own resources such as finance, marketing, equipments, maintenance..etc. Advantages this structures allows for flexibility and quick response to environmental changes. It also enhances innovation and differentioan strategies. Disadvantages: This structure results in duplication of resources because, for example we need to have equipment , for each division. Obviously, it does not support the exchange of knowledge between people working in the same profession because part of them are working in one division and the others are working in other divisions Divisional structure:Divide the organization according to the type of work, region, product and so on. Large organization may break down into Rail, water, road and building division. Divisional structure divides the employees based on the product/customer segment/geographical location. For example, each division is responsible for certain product and has its own resources such as finance, marketing, equipments, maintenance..etc. Advantages this structures allows for flexibility and quick response to environmental changes. It also enhances innovation and differentioan strategies. Disadvantages: This structure results in duplication of resources because, for example we need to have equipment , for each division. Obviously, it does not support the exchange of knowledge between people working in the same profession because part of them are working in one division and the others are working in other divisions


Would a project management organization be different from an organization for regular manufacturing in what ways?

The approach may vary based on their product and market focus.


What impact does an organization's operating system have on its structure?

The structure of an organizations operating system is really impacted by the philosophy of the way an organization wishes to "operate". The two concepts are intertwined, and subject to change. In some circumstances, the structure of an organization can be changed based on the performance of its operating system. A break down in the operating system may cause the organizations structure to be changed.


Main characteristics of formal and informal organisation?

The salient features of formal organization are as follows: (i) Organization structure is laid down by the top management to achieve organizational goals. (ii) Organization structure is based on division of labor and specialization to achieve efficiency in the operations. (iii) Organization structure concentrates on the jobs to be performed and not the individuals who are to perform jobs. (iv) The organization does not take into consideration the sentiments of organizational members. (v) The authority and responsibility relationships created by the organization structure are to be honored by everyone.


What is the name of a Mayan structure based on triangular faces found in the Yucatan peninsula area?

mayans political organization


What is an organization classify organization into different groups and give specific examples each?

The different groups of organization are formal and informal. The formal organization is making goals by laying down a structure and informal organization is making goals based on feelings and emotions.


What is The climate of an organization is based on how members?

The climate of an organization is based on how members _______ about the organization


What sort of groups are defined by the organization's structure?

Groups defined by an organization's structure typically include functional groups, divisions, teams, and departments. Functional groups are based on specific functions or tasks, divisions are based on business units or products, teams are formed for specific projects or short-term goals, and departments are based on broader functional areas such as HR, finance, marketing, etc.