Internal Organisations Flashcards
Functional grouping
Departments where staff have similar skills & expertise & do similar jobs e.g. Marketing, Finance, HR, Operations, R&D
Types of organisational groupings
Functional, product/service, customer, place/territory, technology, line/staff
Advantages of functional grouping
Staff with similar expertise are kept together allowing specialisation, Organisation has clear structure, Staff know who to go to when they need a job done
Disadvantages of functional grouping
See sheet
Product/service grouping
Divisions/departments where each deals with a different product or product range. Each division has it’s own functional staff. E.g. TV company: sports, film, music, children’s divisions
Advantages of product/service grouping
See sheet
Disadvantages of product/service grouping
See sheet
Customer grouping
Divisions dealing with different types of customer e.g. Retail, Trade, Overseas, Mail Order
Advantages of customer grouping
Each division is able to give a service, price & promotions suited to its own type of customer. Customer loyalty builds up because of personal service
Disadvantages of customer grouping
See sheet
Place/territory grouping
Staff are divided into divisions, each dealing with a different geographical area e.g. Scotland, midlands, south/north of England
Advantages of place/territory grouping
Allows an organisation to cater for the needs of customers in different geographical locations
Disadvantages of place/territory grouping
It can be expensive to staff as administration, finance & marketing procedures are duplicated in various divisions
Technology grouping
A manufacturing company groups it’s business activities according to technological or production processes. Only suitable for large organisations which have different products & production processes
Line/staff grouping
Organisation is divided up into line departments involved in generating revenue and staff departments providing specialist support for the whole organisation e.g. Finance & HR
An organisational chart shows:
Relationship between staff, who has authority over whom, who is in charge of organisation/each department, chain of command & lines of communication
Features of a Narrow Span of control
See sheet
A wide span of control means:
See sheet
Factors which affect the Formal Structure of an organisation:
See sheet