Advantages of Departmentation according to Territory
1. Operation costs and maintenance costs are reduced because of proximity to area.
2. Communication with local customers is improved.
3. Regional coordination is improved.
4. There is responsibility at the lower level of management.
5. Can be a training ground for trainee managers.
6. There is all round lowering of costs regards freight, rent and labor.
7. There can be local participation in decision making.
1. Operation costs and maintenance costs are reduced because of proximity to area.
2. Communication with local customers is improved.
3. Regional coordination is improved.
4. There is responsibility at the lower level of management.
5. Can be a training ground for trainee managers.
6. There is all round lowering of costs regards freight, rent and labor.
7. There can be local participation in decision making.
