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Please explain few advantages and disadvantages for the following charts

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA BT – FIA FBT › Please explain few advantages and disadvantages for the following charts

  • This topic has 2 replies, 2 voices, and was last updated 4 years ago by maximus07.
Viewing 3 posts - 1 through 3 (of 3 total)
  • Author
    Posts
  • February 16, 2021 at 7:35 pm #610668
    maximus07
    Participant
    • Topics: 446
    • Replies: 437
    • ☆☆☆☆

    (1) Functional or departmental structure:
    Advantage:
    -Economies of Scale.
    -Standardisation
    Disadvantage:
    Empire building

    (2) Divisional Organisation
    Advantages:
    -Training of General managers

    Please explain the how are these advantage and disadvantages?

    February 16, 2021 at 8:42 pm #610671
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10597
    • ☆☆☆☆☆

    Economies of scale. Eg, all financial recording goes through a specialist, skilled department.

    Standardisation. Not clear what this means. Perhaps it means that everyone has a reasonable idea what the sales department does.

    Empire building. Department heads want more and more staff etc, even if not really justified. They might also become obstructive.

    Training. Eg become the chief accountant in a small division then progress to a larger one after gaining experience.

    February 17, 2021 at 4:33 am #610685
    maximus07
    Participant
    • Topics: 446
    • Replies: 437
    • ☆☆☆☆

    Thank you sir.

  • Author
    Posts
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  • The topic ‘Please explain few advantages and disadvantages for the following charts’ is closed to new replies.

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