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With respect to the types of organizational structures, some advertising agencies prefer the departmental system because:

A. it completely avoids the usage of a commission system to compensate ad agencies.
B. it gives employees opportunity to develop expertise in servicing a variety of accounts.
C. it converts a full-function advertising agency into a creative boutique.
D. it avoids the involvement of the top management in the decision making processes.
E. it allows the creative team and the media team to work together as a group.
B

1 Answer

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Final answer:

Advertising agencies favor departmental structures to allow specialization and expertise development in each department, leading to high-quality service delivery and improved efficiency. While promoting deep understanding of various client needs, it does not eschew top management's decision-making involvement or convert to a boutique model.

Step-by-step explanation:

The departmental organizational structure is favored by some advertising agencies because it allows specialization and expertise to flourish in dedicated divisions within the agency. Advertising agencies, similarly to other bureaucratic organizations, are structured to ensure that professionals in each department can develop deep knowledge and competencies related to their specific function. The departments are often separated by their functions such as the creative team, the media buyers, account services, etc. This separation allows experts to focus on their respective areas, which can lead to a high level of professionalism and high-quality service delivery.

Departmental systems help to create a focused work environment where employees can grow their expertise by working with a variety of accounts, ensuring that they don't become too insulated and unresponsive to the needs of the clients and changes in the market. Despite potential drawbacks like less responsiveness to political change as noted in the context of government bureaucracies, in the advertising world, departmental organization can promote a deep understanding of various client needs among employees.

It is important to note that while a departmental system is beneficial for specialization, it does not necessarily mean that it avoids top management involvement in the decision-making process, nor does it imply a move toward a creative boutique model. Instead, its focus on specialized areas within the agency seeks to improve efficiency and maintain quality across different advertising campaigns.

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