organisational groupings

Question 1

functional grouping

Answer 1

grouping an organisation based on departments called functional areas, based on skills and expertise.
Main functional areas can be supported by admin and it departments.
very small organisations do not have sufficient staff resources to be able to group their staff this way.

Question 2

functional grouping advantages

Answer 2

staff with similar skills and expertise are together.
staff know who to report to and can get guidance from more experienced staff in their area of expertise.
clear structure, lines of authority and career paths are mapped out for employees.

Question 3

functional grouping disadvantages

Answer 3

the organisation can become too large to mange if functional departments grow rapidly.
functional grouping is often coupled with a centralised structure so communication can take a while to filter through to functional departments cause slow reaction to PESTEC.
functional department can be more interested in their own objectives rather than the organisations objectives as a whole.