Groupings Flashcards
What is functional grouping?
When organisations are split into the different depertments e.g. school
Advantages of functional groupings:
- Staff are specialised (similar expertise)
- There are career progression opportunities to kive up the hierarchy
- Staff are motivate
- Problems are shared and solved
- There is good comunication within departments
Disadvantages of functional groupings:
- Department rivalry may occur
- Overspecialised workplace meaning lack of flexability
- Poor communication between departments so slow response to external factors
What are place/ territory groupings?
A grouping organised into geographical devisions (locations) e.g. McDonalds and NHS
What are advantages of place/territory groupings?
- Local market needs are met
- Familiarity with local market customs and cultures
- React to external factors easily
- Easily identify ‘falling’ areas
- Healthy competition between divisions
What are disadvantages of place/teritory groupings?
- Resources are duplicated
- Competition may cause the organisation to forget it’s overall objective
- Expensive admin and staffing costs
What are product/service groupings?
This is when an organisation has different divisions with different products e.g. virgin and amazon
What are advantages of product/service groupings?
- Focus is on individual target segments
- Each divisions performance is measures
- Easily sell off divisions not doing well
- Responsive to external factors
- High expertise
What are disadvantages of product/service groupings?
- Duplication of resources
- Divisions are demotivates when not doing well due to competing
What are technological groupings?
When an organisation is grouped into their activity along technological lines e.g. car production
What are technological grouping advantages?
- Staff are highly specialised
- Staff are quick and easy to train
- Problems are easily identified
What are technological grouping disadvantages?
- Low skilled and repetitive tasks are demotivating
- Capital intensive (expensive)
- Duplication of resources
What are customer groupings?
This is when an organisation splits its divisions that deal with different customers e.g. B&Q or Costco
What are customer grouping advantages?
- Cattering for individual customers e.g. costco has different hours for trade customers
- Markets can be segmented e.g. trade and individual customers
- Direct promotion
- High customer loyalty
- Quick response to change
What are customer grouping disadvantages?
- Loss of control by senior managers over junior managers
- Inefficient for customers if divisions are too small
- Expensive
