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Management Activity: Organising (Benefits of a Product Structure…
Management Activity: Organising
Disadvantages of a Product Structure
Duplication
Product Competition
Poor Communication
Organisational Structure No 2. Product Structure
This unit is divided into units based on the type of products it provides
E.G Toyota, Samsung
Organising involves ensuring there is a clear structure within the firm to facilitate the smooth running of a business
A business manager must arrange the factory, shop or office in the most logical way to achieve the business goals
The manager will split the business up into different departments and make someone responsible for each department
Organisational Structure No 1. Functional Structure
Most common structure
Firm is divided into departments based on functions they perform
Each department has a manager who is responsible for achieving the departments goals
Benefits of a Functional structure
Accountability
Clarity
Specialisation
Employee Motivation
Disadvantages of a Functional structure
Co-ordination
Slow communication
Isolation
Benefits of a Product Structure
Specialisation
Communication
Consumer Demand
Monitor Product Performance
Expert Knowledge