Which of the following is a disadvantage of product‑wise departmentalisation in a hotel chain that offers rooms, food services, and spa treatments?
Answer
It increases coordination effort across product lines
The correct answer is It increases coordination effort across product lines — Step 5: Finalise the answer as the selected option.
Step-by-step solution
- Step 1: Recall that product‑wise departmentalisation groups activities by product type.
- Step 2: Identify a disadvantage: such grouping requires coordination between separate product departments to maintain overall service quality.
- Step 3: Compare with the given options and select the one that states increased coordination effort.
- Step 4: Verify that the chosen option aligns with the definition of a disadvantage for a service firm.
- Step 5: Finalise the answer as the selected option.
Common mistake: Confusing advantage with disadvantage
Concept tested: Disadvantages of product‑wise departmentalisation
Published · How this solution was prepared and checked
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