2. Duplicating tasks
Lack of promotion
Poor staff motivation
Too much work for some staff
Difficulties in dealing with change
Competing departments
3. Staff can focus on one
product/task/customer/geographic area and so
become experts in that field
This increases improved customer loyalty, better
quality products and improved sales and profits
Separate Groupings allow easy identification of
performance
Performance information can allow concentration
on profitable products/customers/geographic area
4. Competition between
function/product/customer/geographic areas
can become unproductive
Individual departmental objectives may
prevent one department helping another
Duplication of resources for each grouping
can be expensive (eg accountants and Human
Resources staff for each group)
