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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

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Q: What are the advantages of product based organisation structure?
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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


What is different between narrow and wide span organization?

The Difference Between Tall (Narrow Span of Control) and Flat (Wide Span of Control) Organisation Structure is based on following twelve points :- 1. Meaning If the span of control is narrow, then there will be many management levels. That is, there will be many managers. This organisation structure is called "Tall Organisation Structure". If the span of control is wide, then there will be fewer management levels. That is, there will be fewer managers. This organisation structure is called "Flat Organisation Structure". 2. Span of Control Narrow span of control results in "Tall Organisation." Here there are many managers. Each manager has to manage only few subordinates. Wide span of control results in "Flat Organisation". Here there are few managers. Each manager has to manage many subordinates. 3. Formal and Informal Relations In Tall Organisation Structure, a manager has to manage only a few subordinates. Therefore, the relationship between them will be informal. Personal relationships are possible. In Flat Organisation Structure, a manager has to manage many subordinates. Therefore, the relationship between them will be formal. Personal relationships are impossible. 4. Control of Subordinates In Tall Organisation Structure, there is a close control because there are few subordinates. In Flat Organisation Structure, there is a loose control because there are many subordinates. 5. Extent of Coordination In Tall Organisation Structure, the coordination is good. In Flat Organisation Structure, the coordination is not so good. 6. Mistakes In Tall Organisation Structure, there are less mistakes because of close supervision and control. In Flat Organisation Structure, many mistakes may occur because of loose supervision and control. 7. Discipline In Tall Organisation Structure, Good discipline can be maintained because there are few subordinates. In Flat Organisation Structure, the possibility of indiscipline exists because there are many subordinates. 8. Cost Tall Organisation Structure is costly because it has many managers. Flat Organisation Structure is less costly because it has less managers. 9. Decision Making In Tall Organisation Structure, Decision making is slow because there are many levels of management. In Flat Organisation Structure, Decision making is quick because there are few levels of management. 10. Guidance to Staff Tall Organisation is suitable for staff that needs detailed guidance. Flat organisation is suitable for staff that needs less guidance and more independence. 11. Pressure on Managers In Tall Organisation, there is less pressure on managers because they have only few subordinates to supervise. In Flat Organisation, there is more pressure on the managers because they have much more subordinates to supervise. 12. Communication In Tall Organisation, communication may be distorted and delayed because there are many levels of management. In Flat Organisation, communication will not be distorted and delayed because there are few levels of management.


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.


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


Main characteristics of formal and informal organization?

Main characteristics of formal organisation * Deliberately planned and created * Concerned with the co-ordination of activities * Hierarchically structured with stated objectives * Based on certain principles such as the specification of tasks * Organization structure is laid down by the top management to achieve organizational goals. * Organization structure is based on division of labor and specialization to achieve efficiency in the operations. * The authority and responsibility relationships created by the organization structure are to be honored by everyone. * Developed through delegation of authority * Organization structure concentrates on the jobs to be performed and not the individuals who are to perform jobs. * The organization does not take into consideration the sentiments of organizational members. Main characteristics of informal organisation * The informal organisation is flexible and loosely structured * Relationships may be left undefined * Membership is spontaneous and with varying degrees of involvement * Involves two or more people * Informal relationships, groupings & interactions * Repeated contacts but without any conscious joint purpose * Involves the human need to socialize * Includes both friendly and hostile relationships and interactions * Informal association precedes formal organization, as it requires preliminary (informal) contact and interaction before establishment

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 organ structure?

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


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


Organisational structure of any Indian company?

Organisation sturcture of Indian company based on functional and production system


What is divisional structures?

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


What is different between narrow and wide organization?

The Difference Between Tall (Narrow Span of Control) and Flat (Wide Span of Control) Organisation Structure is based on following twelve points :- 1. Meaning If the span of control is narrow, then there will be many management levels. That is, there will be many managers. This organisation structure is called "Tall Organisation Structure". If the span of control is wide, then there will be fewer management levels. That is, there will be fewer managers. This organisation structure is called "Flat Organisation Structure". 2. Span of Control Narrow span of control results in "Tall Organisation." Here there are many managers. Each manager has to manage only few subordinates. Wide span of control results in "Flat Organisation". Here there are few managers. Each manager has to manage many subordinates. 3. Formal and Informal Relations In Tall Organisation Structure, a manager has to manage only a few subordinates. Therefore, the relationship between them will be informal. Personal relationships are possible. In Flat Organisation Structure, a manager has to manage many subordinates. Therefore, the relationship between them will be formal. Personal relationships are impossible. 4. Control of Subordinates In Tall Organisation Structure, there is a close control because there are few subordinates. In Flat Organisation Structure, there is a loose control because there are many subordinates. 5. Extent of Coordination In Tall Organisation Structure, the coordination is good. In Flat Organisation Structure, the coordination is not so good. 6. Mistakes In Tall Organisation Structure, there are less mistakes because of close supervision and control. In Flat Organisation Structure, many mistakes may occur because of loose supervision and control. 7. Discipline In Tall Organisation Structure, Good discipline can be maintained because there are few subordinates. In Flat Organisation Structure, the possibility of indiscipline exists because there are many subordinates. 8. Cost Tall Organisation Structure is costly because it has many managers. Flat Organisation Structure is less costly because it has less managers. 9. Decision Making In Tall Organisation Structure, Decision making is slow because there are many levels of management. In Flat Organisation Structure, Decision making is quick because there are few levels of management. 10. Guidance to Staff Tall Organisation is suitable for staff that needs detailed guidance. Flat organisation is suitable for staff that needs less guidance and more independence. 11. Pressure on Managers In Tall Organisation, there is less pressure on managers because they have only few subordinates to supervise. In Flat Organisation, there is more pressure on the managers because they have much more subordinates to supervise. 12. Communication In Tall Organisation, communication may be distorted and delayed because there are many levels of management. In Flat Organisation, communication will not be distorted and delayed because there are few levels of management.


What is different between narrow and wide span organization?

The Difference Between Tall (Narrow Span of Control) and Flat (Wide Span of Control) Organisation Structure is based on following twelve points :- 1. Meaning If the span of control is narrow, then there will be many management levels. That is, there will be many managers. This organisation structure is called "Tall Organisation Structure". If the span of control is wide, then there will be fewer management levels. That is, there will be fewer managers. This organisation structure is called "Flat Organisation Structure". 2. Span of Control Narrow span of control results in "Tall Organisation." Here there are many managers. Each manager has to manage only few subordinates. Wide span of control results in "Flat Organisation". Here there are few managers. Each manager has to manage many subordinates. 3. Formal and Informal Relations In Tall Organisation Structure, a manager has to manage only a few subordinates. Therefore, the relationship between them will be informal. Personal relationships are possible. In Flat Organisation Structure, a manager has to manage many subordinates. Therefore, the relationship between them will be formal. Personal relationships are impossible. 4. Control of Subordinates In Tall Organisation Structure, there is a close control because there are few subordinates. In Flat Organisation Structure, there is a loose control because there are many subordinates. 5. Extent of Coordination In Tall Organisation Structure, the coordination is good. In Flat Organisation Structure, the coordination is not so good. 6. Mistakes In Tall Organisation Structure, there are less mistakes because of close supervision and control. In Flat Organisation Structure, many mistakes may occur because of loose supervision and control. 7. Discipline In Tall Organisation Structure, Good discipline can be maintained because there are few subordinates. In Flat Organisation Structure, the possibility of indiscipline exists because there are many subordinates. 8. Cost Tall Organisation Structure is costly because it has many managers. Flat Organisation Structure is less costly because it has less managers. 9. Decision Making In Tall Organisation Structure, Decision making is slow because there are many levels of management. In Flat Organisation Structure, Decision making is quick because there are few levels of management. 10. Guidance to Staff Tall Organisation is suitable for staff that needs detailed guidance. Flat organisation is suitable for staff that needs less guidance and more independence. 11. Pressure on Managers In Tall Organisation, there is less pressure on managers because they have only few subordinates to supervise. In Flat Organisation, there is more pressure on the managers because they have much more subordinates to supervise. 12. Communication In Tall Organisation, communication may be distorted and delayed because there are many levels of management. In Flat Organisation, communication will not be distorted and delayed because there are few levels of management.


What is design in modular form and its advantages?

Basically, design in modular form means designing a whole product (see program or software piece) based on modules (functions, classes, and a like). The advantages would be a flexible structure, easy to maintain, debug, upgrade and also customize with respect to changing customer requirememnts.


What is divisional organization structures?

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


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.


Which organisation is based on Tracy Island?

Thunderbirds


Where are the world health organisation based?

GENEVA, Switzerland