Understanding Business Flashcards
What are the advantages and disadvantages of functional grouping?
Advantages: Staff become experts in their own field.
- Decision- making is better.
- Team- working is better
Disadvantages: Some decisions take a long time.
- Some problems cannot be solve by one department.
- Staff loyalty to the department rather than the organisation.
What are the advantages and disadvantages of product/service grouping?
Advantages: Each member of staff in that division will have knowledge about that specific product.
- This grouping allows for a quicker response to external changes in customer requirements.
- Each division is a self-contained unit
Disadvantages: It is difficult to share research and development or equipment.
- Because each division requires its own support staff ( administration, finance, human recourses department, etc.) there is bound to be duplication of resources, tasks and personnel
