groupings Flashcards
what is a functional grouping
where staff have similar skills and experience. they do similar jobs.
what would a business have if it had functional groupings
a finance, HR, marketing, and operations department
what are the advantages of a functional grouping
staff with similar expertise would be kept together allowing specialisation
organisation will therefore have a clear structure
staff will know who to turn to when they need a specific job done
what are the disadvantages of a functional grouping
organisation may become too large to be managed effectively
may be unresponsive to change
individuals may become too involved with their own interests rather than the whole organisation.
what is a product/service grouping `
divisions/departments that deal with a different product
what are the advantages of a product/service grouping
each division can be more responsive to changes in their field
expertise can develop within a division regarding to its product/service
can give more incentive for staff to perform better
management can easily identify parts of business that aren’t doing so well
what are the disadvantages of a product/service grouping
may be necessary duplication of resources/tasks across different products
divisions may find themselves competing with one another
what is a customer grouping
divisions that deal with different types of customers. May be different for each of the divisions for retail, trade, overseas and mail order
what are the advantages of a customer grouping
each division able to give service, price and promotions suited to its own type of customers
customer loyalty builds up because of personnel service which means business could sell products at a higher price
what are the disadvantages of a customer
groupings can be expensive because of greater staff costs
possible duplication of admin, finance, marketing and operations
what is a place/territory grouping
staff are divided into division dealing with different geographical area
what are the advantages of a place/territory grouping
allows org to cater for needs of customers in different geographical locations
what are the disadvantages of a place/territory grouping
can be expensive for staff with administration, finance and marketing procedures duplicated in various divisions
what is a technology grouping
when manufacturing company groups its business’s activities according to technological or production processes can only be used by a large co.
what is line/staff grouping
org divided up into line departments involved in generating revenue and staff departments providing specialist support for whole org.
