ECON 308 Midterm: Midterm 2 Study Guide Part 4
Document Summary
It promotes functional expertise (for example: each member has a phd or many years in their field) It incurs lower costs to recruit, retain and evaluate functional members (for example: when econ department wants to recruit new phd graduate they send out senior prof. ) There is lower costs of communicating and share results among members of the same functional specialty. There is well defined promotion path for employees. Higher senior management costs of coordinating functions (for example: college den is in charge of every department in the college) Higher communicating cost across functional departments (for example: econ department teaches different language from other departments) Too much functional expertise and not overall customer satisfaction (for example: taking only classes in management doesn"t help you understand overall concept of business) In-fights among functional groups (for example: each department wants to have more full time prof. because the department will have more vote)
