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Functional Grouping - Departments where staff with similar skills and expertise work together. 


  • Staff with similar expertise are kept together
  • Organisation has clear structure
  • Staff know who to turn to when they need a job done


  • May be too large to be managed effectively
  • May be unresponsive to change
  • Departments may become too concerned with own interests instead of the companies

Product/ Service Grouping - Departments which deal with different products or product range. Eg…


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