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…