Which one of the following is not an advantage in case of product-based departmentalization? 

The incorrect answer is Requires less number of managerial personnel to be employed

Key PointsProduct departmentalization is an organizational strategy that divides employees into teams to work on all aspects of a particular project or product line.

Large Organisations like Kirloskar, Hindustan Unilever, and Godrej have managed the expansion of product lines effectively by creating separate departments or divisions for the various products.

Important Points

Advantages of product departmentalization

• Provides a higher level of customer service
• Proper attention may be devoted to the manufacture of a product.
• A new product can easily be introduced without any difficulty.
• Easy to fix the responsibilities.
• This enables top management to compare the performances of different products or product lines and make decisions regarding investment, production, and marketing strategies. 
• It can help to increase motivation and performance of department heads. This is because they are given responsibility for the entire process of creating and delivering a specific product and are thus more directly accountable for the success or failure of that product.