Years ago, Johnny created a successful sportswear company that continues to provide uniforms for clients in the Midwest. As his business started to grow, Johnny added functional departments including a marketing department and an accounting department. But now, he sees that employees who specialized in these areas no longer share knowledge with each other in the same way they did when the business was smaller. As one of Johnny's consultants, you explain that as the company grows taller, it cannot avoid this pitfall, and he should focus on continued functional departmentalization, especially if he supports innovation and learning.

Question

Quizplus · Accepted Answer

A disadvantage of functional departmentalization is a lack of communication between and among departments. Employees may identify with their own department's goals, as opposed to the goals of the company.

Years Ago, Johnny Created a Successful Sportswear Company That Continues