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Types of Organisational Groupings

Abz, Alice and Conor

Inveralmond chs

on 21 November 2012

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Transcript of Types of Organisational Groupings

Types of Organisational Groupings Functional Grouping Functional groups are departments where staff have similiar skills and expertise, and do similar jobs. Product/service Grouping Product/service groups are divisions/departments where each deals with a different product or product range. e.g, a tv company that have a Sports Division, Film Division and a Music Division but all have their own staff. Place/territorty Grouping Staff are fivided into divisions, each dealing with a different geographical area. Customer Grouping Customer groups are divisions dealing with different types of customers. Technology Grouping This is a grouping in which a manufacturing company groups its business activities according to technological or production processes. This type of grouping is only suitable for large organisations which have different products and processes. Advantages:
·Staff with similar expertise are kept together allowing specialisation.
·Organisation has a clear structure
·Staff know who to turn to when they need a job done. Disadvantages:
·Organisations may become too large to be managed effectively.
·It may be unresponsive to change.
·Individual departments may become more concerned about their own interests rather than the organnisations stragetic objectives. Advantages:
·Each division can be more responisble to changes in its field.
· Expertise can develop within each division regarding its product/service.
·can give more incentive for staff to perform better. Disadvtanges:
·There may be unnecessary duplication of resources/tasks/personnel across different products.
·Division may find themselves competing with one another. Advantages:
·Each division is able to give a service, price and promotions suited to its own type of customer.
·Customer loyalty builds up because of personal service. Disadvantages:
·This method of grouping can be more expensive because of the greater staff costs. The more devisions that are created the more staff needed.
·Possible duplication od administration, finance and marketing procedures. Advantage - It allows an organsation to cater for the needs pf customers in different geographical locations. Disadvantage - It can be expensive to staff, with administration, finance and marketing procedures suplicated in various divisions. Line/staff Grouping This is a grouping in which the organisation is divided up into line departments involved in generating revenue and staff departments providing specialist support for the whole organisation
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