Which of the following is an advantage of product departmentalization? a. The speed and effectiveness of decision making are enhanced. b. Administrative costs decrease. c. Managers focus on helping the group rather than the organization. d. The organization is able to use skilled specialists to deal with unique customers.

A. The speed and effectiveness of decision making are enhanced.

Explanation:

Product departmentalisation involves grouping activities by product line. That is, it can also be grouped according to a specific product or service, thus placing all activities related to the product or the service under one manager. Each major product area in the corporation is under the authority of a senior manager who is specialist in, and is responsible for, everything related to the product line.

Advantages of product departmentation include:

(i) It is easy to evaluate the Performance

(ii) Product Departmentation Can Reduce the Problem of Co-Ordination

(iii) Advantage of Specialised Product Knowledge

(iv) Manager is Interested in the Expansion, Improvement and Diversification Programmes of the Product.

(v) provides flexibility

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