Groupings And Structures

Question 1

List the groupings

Answer 1

Functional 
Product/service
Customer
Geographical 
Technological

Question 2

List the structures

Answer 2

Flat
Matrix
Entrepreneurial

Question 3

Describe and give and 2 advantages and a disadvantage of functional grouping

Answer 3

Describe:
When an organisation is set up in departments covering the 4 main areas of business activity

Advantage:
•Staff skills all together in the same group, good for specialisation

•clear organisation structure with defined roles

Disadvantage:
Department rivalry - staff not loyal to company but departments

Question 4

Describe and give and 2 advantages and a disadvantage of product service grouping

Answer 4

Describe:
When the organisation is grouped based on the service or product it offers.

Advantages:
•each division can focus on their own market, - more responsive to change

•each division’s performance can be measured

Disadvantage:
•loss of control by central management over divisional management

Question 5

Describe and give and 2 advantages and a disadvantage of customer grouping

Answer 5

Describe:
Structured around customers or groups of clients. Likely Found in service sectors

Advantage:
•can cater for specific customer needs
•customer loyalty builds up because of personal service

Disadvantage:
•labour intensive, which affects profitability

Question 6

Describe and give and 2 advantages and a disadvantage of a flat structure

Answer 6

Describe:
Flat pyramid
Few levels of roles

Advantages:
•more flexibility in staff deployment
•fast communication and decision

Disadvantages:
•fewer promotion opportunities

Question 7

Describe and give and 2 advantages and a disadvantage of matrix structures

Answer 7

Describe:
Horizontal, where employees are organised into teams.
Used in project based organisations

Advantages:
•good for problem solving
•motivational for each team

Disadvantages:
•expensive, if many teams are required in org

Question 8

Describe and give and 2 advantages and a disadvantage of entrepreneurial structure

Answer 8

Describe:
Nuclear structure, with 1 person in charge of decision making

Advantages:
•decisions are made quickly - manager does not consult

Disadvantage:
•does not allow for initiative from staff / de motivating
•top manager carries work load and stress