Business/Staff Groupings Flashcards
what is functional grouping
splitting into departments who complete specialist tasks
what are advantages of functional grouping
- experts can carry out tasks to the best standard for customers
- staff can specialise in tasks they’re good at improving efficiency
- clear promotional structure means motivation
what are the disadvantages of functional grouping
- departments can get too big to manage and become inefficient
- slower communication between departments
- departments may focus on themselves instead of org as a whole
what is regional grouping
MNCs split their businesses into regions or areas
eg. scottish water has east, west and north divisions
what are the advantages of regional
- caters for specific needs of customers in specific areas
- better decisions from specialists knowledge
- fewer language conflict as local staff is employed
what are the disadvantages of regional grouping
- harder to make organisation wide decisions
- duplication of resources in multiple areas eg functional depts
- needs of different areas may run into each other which can effect efficiency
what is product/service grouping
often found in conglomerates with divisions dealing with different products
eg news international has a paper, TV division for virgin
what are the advantages of a product/service grouping
- divisions are responsive to changes improving flexibility
- can identify under-performing areas easier
- expertise develops within each division so specialists knowledge help success
what are the disadvantages of product/services grouping
- divisions may compete with each other instead of sharing ideas
- difficult to share research and development (R&D) or equipment across a range of different products
what is customer grouping?
organise staff and job roles according to how a consumer uses them so departments deal with different customers
eg enquiries, deliveries
what are the advantages of customer grouping
- improved satisfaction as depts provide specialist services
- customer loyalty will build up which helps cash flow guarantee
- promotions can be directed to specific groups so are more effective
what are the negatives of customer grouping
- competition between sections can effect relationships negatively
- changes in staff means continuity of personal service is lost
- costs can increase as more staff needs employed if a new section is set up
what is technology grouping
used by manufacturers with different parts and processes who group according to technologies or processes
what are the advantages of technology grouping
- specialists located in different factories
- meal areas are identified and acted upon
- reduced wasted costs as they’re experts
what are the disadvantages of technology grouping
- specialist staff need higher wages
- duplication of functional procedures
- cost of developing technology needed
