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-For one, managers in each department may focus on their own product or product group to the exclusion of the rest of the organization.
-Second, administrative costs rise because each department must have its own functional specialists for areas such as market research and financial analysis.

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First, all activities associated with one product or product group can be easily integrated and coordinated.
Second, the speed and effectiveness of decision-making are enhanced.
Third, the performance of individual products or product groups can be assessed more easily and objectively.

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-For one, decision-making tends to become slower and more bureaucratic.
-Finally, accountability and performance become increasingly difficult to monitor.

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-First, each department can be staffed by experts in that functional area.
- Second, supervision is facilitated because an individual manager needs to be familiar with only a relatively narrow set of skills.
-Third, coordinating activities inside each department is easier.

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Grouping jobs
involving the same
or similar activities

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a group is given responsibility for designing the work system to be used in performing an interrelated set of tasks

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an alternative to job specialization that does take into account the work system and employee preferences

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assumes that increasing the range and variety of tasks is not sufficient by itself to improve employee motivation

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developed to increase the total number of tasks workers perform

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systematically moving employees from one job to another

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Members present divergent viewpoints -> The leader should not make his or her position known too early

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Each member of the group or team should critically evaluate all alternatives -> avoiding groupthink

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Workers may bored or disatisfied

Benefits may not occurred

Some degree of specialization should not be carried to extreme. Managers must be sensitive to situations that extreme specialization should be avoided

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Setting a deadline -> Time and cost can be managed

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Managers: aware of the pros and cons of having a group or team make a decision to start with

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Performing small task -> become proficient at each task

When a specialized employee is absent or resigns -> can train new employee at low cost

Decreases transfer time between tasks

Job more narrowly defined -> easier to develop specialized equipment

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Groupthink may occur

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One person may dominate the group

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Compromise decisions resulting from indecisiveness may emerge

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More information is available in a group or team setting

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Better decisions generally emerge.

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Enhanced communication of the decision may result.

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More acceptance of the final decision is likely.

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More alternatives are likely to be generated.

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Advantages of Group and Team Decision Making

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Advantages of Group and Team Decision Making

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Disadvantages of Group and Team Decision Making

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Disadvantages of Group and Team Decision Making

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GROUP AND TEAM DECISION MAKING IN ORGANIZATIONS (CHAP 4)

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GROUP AND TEAM DECISION MAKING IN ORGANIZATIONS (CHAP 4)

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Benefits and limitations of Specialization

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Benefits and limitations of Specialization

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Grouping activities around products or product groups

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A fairly large administrative staff is required to integrate the activities of the various departments.

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A larger administrative staff may be required if the organization must keep track of units in scattered locations.

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It enables the organization to respond easily to unique customer and environmental characteristics in the various regions.

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Groups jobs on the basis of defined geographic sites or areas. The defined sites or areas may range in size from a hemisphere to only a few blocks of a large city.

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The organization structures its activities to respond to and interact with specific customers or customer groups.

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GROUPING JOBS: DEPARTMENTALIZATION (CHAP 6)

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GROUPING JOBS: DEPARTMENTALIZATION (CHAP 6)

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The process takes longer than individual decision making, so it is costlier