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5) Another advantage is that inter-departmental communication is improved that leads to greater group collaboration and mutual agreement. Organisational harmony and unity is also enhanced because of excellent relationship building.
6) The structure is very much beneficial in problem-solving and decision making because problems related to different operations are resolved by the concerned department personnel. For example, marketing personnel will resolve the issue of declining sales whereas production department will focus on issues about product designing and prototyping.
2) Secondly, the organisation becomes rigid and less adaptable to changes in external environment. Indeed, it may not be possible to make immediate innovations because of delayed approvals from strategic planners.
3) Next, the key decisions by top managers are delayed because information about specific operations flows from down-to-up and up-to-down that wastes sufficient business hours. Staggering losses are incurred in some instances.
6) Employees are not provided general administrative training and thus they can not adjust themselves other than their specific area of interest. For example, a marketer may not be able to perform administrative / management duties even for temporary periods because he is not trained by employers.
1) The internal efficiency within an organization increases in a rapidly changing business environment that demands immediate adjustments. The human resources are used more effectively. As a result, a business organisation becomes highly flexible and adaptable.
Customers do not have any inclination to purchase a substandard product because they demand value and satisfaction for money they spend on various goods and services. In fact, every potential buyer is interested in purchasing high quality products to meet its needs / desires and to attain satisfaction. Quality, therefore, can be defined as the ability of a product that meets or exceeds
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6. MIS focuses on the interaction
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