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(1) Functional or departmental structure:
Advantage:
-Economies of Scale.
-Standardisation
Disadvantage:
Empire building(2) Divisional Organisation
Advantages:
-Training of General managersPlease explain the how are these advantage and disadvantages?
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.
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