Questions and Answers
What is functional grouping?
Functional grouping organizes staff with similar skills and knowledge together.
What is customer grouping?
Customer grouping structures staff around a targeted type of customer/client/supplier.
Both functional groups and customer groups can compete with each other inside the organization.
True
Both functional groups and customer groups allow staff to build expertise.
Signup and view all the answers
How do customer groups respond to changes in customer needs?
Signup and view all the answers
Why might functional grouping be cheaper than customer grouping?
Signup and view all the answers
Is it easier to compare performance in customer grouping or functional grouping?
Signup and view all the answers
Study Notes
Organisational Structures
- Functional Grouping: Organizes staff based on similar skills and knowledge, creating departments that specialize in specific functions like marketing, finance, or production.
- Customer Grouping: Structures teams around specific types of customers, clients, or suppliers, enhancing the focus on customer needs and service.
Interaction and Competition
- Internal Competition: Both functional and customer groups can compete against each other for resources and recognition within the organization, often leading to a dynamic work environment.
Specialization and Expertise
- Development of Skills: Staff members in both structures can specialize and develop deep expertise in their respective areas, contributing to enhanced efficiency and productivity.
Responsiveness to Change
- Customer Group Adaptability: Customer groups tend to be more agile and responsive to changing customer preferences and market dynamics, whereas functional groups might struggle to adjust quickly due to their focus on internal efficiencies.
Cost Implications
- Functional Grouping Cost Efficiency: Functional grouping may incur lower costs due to reduced duplication of roles and responsibilities, leading to streamlined operations.
Performance Measurement
- Performance Tracking: It is generally easier to assess and compare the performance of customer groupings, allowing for targeted improvements, whereas functional grouping encompasses broader performance metrics for the entire organization.
Studying That Suits You
Use AI to generate personalized quizzes and flashcards to suit your learning preferences.
Description
Explore the various organisational structures, focusing on functional and customer grouping. This quiz delves into how these structures foster specialization and lead to internal competition, as well as their adaptability to change. Test your understanding of these key concepts in organizational dynamics.
