signments are:
Forgone complementarities across tasks: Supposing that Bagby's engineers have to design and develop a new copier but they do not participate into the manufacturing and marketing functions, they will not have the sufficient feedback to develop a successful product. This feedback will be traduced in customers needs, future market opportunities or cheaper substitutes for raw materials. As another example, if within a product unit, only one person is in charge of assemble and check the wired bundle the care with which person does his job will decrease.
Coordination costs: The activities of specialized employees have to be coordinated. For instance, Bagby would have to establish the methods and procedures required to process a certain quantity of bundles during a period of time so technicians could use the same methods and procedures to process different kinds of bundles, this required a high level of coordination between the different product units. Bagby's managers will also need to coordinate procedures between functional and product basis groups.
Functional myopia: With specialized task assignment, employees tend to concentrate on their individual functions rather than on the overall process of providing good sales and services. For example, the performance of the manufacturing department could be measure base on the quantity of produced units and the performance of the marketing department could be measure based on sales, but if the quality of the copiers decrease sales will be negatively affected and the performance of the marketing department will be low while the performance of the manufacturing department remains high.
Reduced flexibility: Failure to cross-train employees has costs as well as benefits. For example, if only one person is trained to perform a particular function he or she becomes indispensable for the organization and this is a disadvantage when bargaining with the employee over salary and...