- Requires adequate availability of persons with general management abilities as more and more departments are created for the various products;
- The product departments may try to become too autonomous thereby presenting top management with a control problem;
- It is also common to find product departments engaged in the duplication of efforts. Each product unit has its own functional departments. These may not be sufficiently large to make maximum use of facilities. Thus product departmentation becomes an expensive organizational form.
Kavungya answered the question on March 26, 2019 at 12:44
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