B Criteria for grouping
7 important questions on B Criteria for grouping
Given a set of positions, designed in terms of specialization, formalization, and training and indoctrination. Two obvious questions face the designer of the organizational structure.
- Define those two questions:
- How should these positions be grouped into units?
- How large should each unit be?
A number of studies that have focused on the relationships among specific operating tasks stress one conclusion:
- Grouping of operating tasks should reflect natural workflow interdependencies.
Work-flow interdependencies are not, of course, the only ones to be taken into consideration by the designer of organization structure. A second important class of interdependence relates to the processes used in the word flow.
For example, one lathe operator may have to consult another, working on a different product line, about what cutting tool to use on a certain job.
- What is the positive result of process interdependency?
- When specialists are grouped together, they learn from each other.
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The third criterion for grouping relates to economics of scale.
Groups may have to be formed to reach sizes large enough to function efficiently.
Scale interdependices.
- Provide an example:
- Every department in the factory requires maintenance.
- But that does not necessarily justify attaching one maintenance man to each department, grouping him by workflow. There may not be enough work for each maintenance man.
- So a central maintenance department may be set up for the whole factory.
- This of course encourages process specialization: whereas the maintenance man in each department would have to be a jack of all trades, the one among many in a maintenance department can specialize, for example, in preventive maintenance.
Grouping by function - by knowledge, skill, work process, or work function - reflects an overriding concern for process and scale interdependencies (and perhaps secondarily for social interdependencies), generally at the expense of those of the workflow.
Grouping on a functional basis has advantages.
- Name two:
- The organization can pool human and material resources across different workflows.
- Functional structure also encourages specialization, by establishing career paths for specialists within their own area of expertise.
Market grouping: knowledge, skill, work process and function. By the means; the functions it uses to produce its products and services.
In general, the market structure is a less machine-like structure, less able to do a specialized or repetitive task well.
- What are the advantages of market grouping?
- It can do more tasks.
- It can change tasks more easily, its essential flexibility servicing from the fact that its units are relatively independent of each other.
- Units are relatively independent of each other, new units can easily be added and old ones deleted.
- Any one store in a retail chain can easily be closed down, usually with little effect on the others. But closing down one specialized department in a large store may bankrupt it.
Grouping by function.
The functional structure lacks a built-in mechanism for coordinating the workflow.
- Name the disadvantage that results from this statement above:
- When sales drop, who is at fault?
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