Sunday, August 12, 2012

Geographic structure


Ø  Departments are created under different regions or geographic location. This form of department or structure is applied specially in those organizations that involve in business activity in different geographical location. In other words those organizations which are scattered in different geographical location and region adopt this type of departmentation. The main objective of such departmentation is to give effective service to the people of particular region. Regional managers are free to work.

Advantages

a)      It helps to achieve local cooperation
b)      Local resources are best utilized.
c)       It facilitates the expansion of business into various regions.
d)      It considers the environmental change.
e)      There is better coordination of activities through the setting up of regional divisions.
f)       It can meet the local demand more effectively.

Disadvantages

a)      There may be problem of integration of various regional offices.
b)      There is possibility of duplication of physical facilities.
c)       It is more difficult to maintain central control over regional departments.
d)      There may be lack of skilled and efficient persons to take charge of regional departments.
e)      It is costly method of departmentaion.

No comments:

Post a Comment