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Types of Organisational Groupings
Transcript of Types of Organisational Groupings
·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