work ons Flashcards
functional grouping
adv
Brings together employees with similar skills allowing expertise to develop.
Less duplication of resources
dis
Can lead to slow decision making and poor communication
Can become unresponsive to external changes in the market
product grouping
advantages
encourages customer loyalty
Easier to identify products that are poorly performing
Departments can respond more quickly to change in their specialist area
dis adv
There can be duplication of effort and resources
Departments based on products may end up competing with each other
Difficult to share expertise and resources across departments
customer grouping
his is when an organisation divides its operations by types of customer.
adv
It encourages customer loyalty as customer needs are the main focus of the department
Individual departments are more responsive to changes in customer needs
dis
There can be duplication of effort and resources
Competition between departments may occur
Difficult to share expertise and resources across departments
location grouping
adv
Each department can meet the needs of local markets and can react quickly to external factors
Communication is better, for example with different languages or cultures
Failing departments can be easily identified
dis
Naturally high cost due to duplication of effort and resources
Departments may begin to compete with each other
New departments need to be created when the business wants to trade in a new area.
technological
adv
Specialists are all working together which may result in a higher quality product
Wastage and costs may be reduced due to specialist equipment and staff knowledge
dis
High cost of training
There can be duplication of effort and resources
Can only be used in very large organisations
entrepenural structre
adv
Decisions are often made quickly by the entrepreneur who is experienced within the business.
dis
There is a workload issue for the decision makers as responsibility for many tasks will fall to them.
matrix
advantages
a good way of having different viewpoints and skills involved in a project
provide staff with an opportunity to learn new skills from other members of the team which may lead to greater motivation and productivity
disadv
t is very expensive
team members may have priority issues when having to report to two bosses (their regular line manager and their project leader)
assesing the affectiveness of a decsion
Measuring sales levels to see if they have increased.
Monitoring staff morale.
Researching customer review websites.
outsourcing
allows organisation to focus on core activities - the core
service can be improved
fewer employees required - may lead to cost savings
outsourced companies use specialist equipment - saves costs on purchasing equipment and current equipment can be sold
dis advantages
Employees may be de motivivatsz as they have not been picked for a task
The business has less control
organisations can lose control over outsourced work − therefore
communication needs to be very clear or mistakes can arise
suppliers
computerised inventory control
Databases keep balances of inventory
which are automatically updated.
Can be linked to tills through EPOS,
which update with each sale.
Accurate and constant monitoring of
inventory levels.
dis
Expensive to set up
Highly dependent on technology so if powercut occurs then the business will have no way in checking inventory untill it clear.
Breakdowns can hold up re-orders and
production.
