Grouping of posts

Grouping of posts
See also
Specialization Forms of advertising Strategic business unit Importance of teamwork Management information system Outsourcing - Transfer of service Transformational outsourcing Development of the organization Cost calculation

Organizational structure determines a division of labor and shows the relationship between the various functions and operations. An essential part of the organizational design is the grouping of posts according to the logical system. The elements may be grouped on the basis of the similarity of the acts performed by them as well as around a common subject of the work. In addition to above mentioned two basic criteria for grouping there are more.

Grouping by functions

Description of grouping by function follows below. Is involves connecting posts that require the same or similar activities, competences. This criterion enables the recruitment for each unit of experts in the field, with similar qualifications. In addition, facilitates the coordination of activities in each unit, eases supervision and allows for economies of scale in the implementation of a function. Weaknesses of grouping by functions can be: slower and bureaucratic decision-making process, results of work hard to observe. Employees may be too narrowly focused on their organizational units and lose sight of the whole system.

Grouping by object of work

Next grouping criterion is done according to item produced. It involves the allocation of activities around the products or product groups. The advantages of such an approach is the ease of integration and coordination of all the activities around one group of products, greater speed and efficiency of decision making and the ability to relatively cheaper and objective assessment of the results of employees. The criterion is also not ideal, since the managers of particular department are excessively focused only on their product, neglecting the rest of the organization. It is followed by an increase in administrative costs, because each unit must have their own professionals for issues such as marketing and financial analysis. Yet another type of grouping of the organization is grouping according to the client type. The purpose of this form of grouping is better servicing of specific clients or groups. It allows the organization to use qualified professionals for servicing particular client group (i.e. individual or institutional). The difficulty in maintaining a consistent company policy and the requirement for quite a large administrative staff can cause adverse effect in this type of grouping.

Grouping by the territorial criterion

Posts can also be grouped on the basis of territorial criteria. It allows organizations to respond to the specific requirements of the client and environmental characteristics of different geographical regions. The disadvantage of this type of grouping is the need quite a large administrative staff. There are still other forms of grouping, to which we can include grouping: by time, by sequence, by stage in process, etc.

Examples of Grouping of posts

• By Function: This is the most common way to group posts and is based on the similarity of functions performed by the positions. For example, a company may have a finance department, a marketing department, a sales department, and an IT department.
• By Location: This is another way to group posts and is based on the geographical locations where the positions are located. For example, a company may have offices in different countries and they may have a dedicated team of employees in each office.
• By Division: This is another way to group posts and is based on the division of the company. For example, a company may have different divisions such as a manufacturing division, a research and development division, and a customer service division.
• By Level: This is another way to group posts and is based on the level of responsibility and authority associated with the positions. For example, a company may have positions ranging from entry-level to executive-level.
• By Department: This is another way to group posts and is based on the departments within a company. For example, a company may have a human resources department, a finance department, a marketing department, and an IT department.

Advantages of Grouping of posts

Grouping of posts has several advantages. It allows for efficient delegation of duties and responsibilities, improves communication, increases productivity, facilitates coordination, and reduces costs.

• Delegation of duties and responsibilities: Grouping of posts allows for a clear and efficient delegation of duties and responsibilities to the individuals in a specific job role. This helps to ensure that the right person is doing the right task and reduces the stress of multiple tasks being placed on one individual.
• Improved communication: Grouping of posts can help to improve communication between the different departments and individuals in the organization. It allows for a clear understanding of who is responsible for what tasks, making communication more efficient and effective.
• Increased productivity: Grouping of posts can help to increase productivity by allowing for the specialization of tasks. This means that individuals can focus on the tasks they are best suited for, leading to more efficient and effective work being done.
• Facilitated coordination: Grouping of posts can help to facilitate coordination between different departments in the organization. This allows for individuals to be aware of what other departments are doing and how their work fits into the larger organizational structure.
• Reduced costs: Grouping of posts can help to reduce costs by streamlining the organizational structure. This means that fewer resources are needed to maintain the same level of operations and productivity, leading to cost savings in the long run.

Limitations of Grouping of posts

Grouping of posts have certain limitations that need to be taken into account when designing an organizational structure. These limitations include:

• Overlap of Functions: Grouping of posts can lead to a situation where two or more posts in the same group perform overlapping functions and tasks. This can lead to confusion and inefficiencies in resource allocation and utilization.
• Confusion of Responsibilities: Grouping of posts can also lead to a situation where two or more posts in the group have similar but different responsibilities. This may create confusion as to who is responsible for what and can lead to conflict between the posts.
• Lack of Flexibility: Grouping of posts can lead to a lack of flexibility when it comes to changes in the organization. This can limit the organization’s ability to respond to changing conditions and demands.
• Limited Resources: Grouping of posts can lead to a situation where the resources allocated to a particular group are limited. This can lead to inadequate resources being allocated to a particular post or group of posts, resulting in a lack of productivity and efficiency.
• Unclear Roles and Responsibilities: Grouping of posts can also lead to a situation where roles and responsibilities are unclear. This can lead to confusion and inefficiencies in the organization.

Other approaches related to Grouping of posts

• Functional Grouping: This is when jobs are grouped by the type of work that they do. For example, all customer service jobs might be grouped together.
• Geographical Grouping: This is when jobs are grouped according to the geographical area in which they are located. For example, all jobs in a particular city or country might be grouped together.
• Divisional Grouping: This is when jobs are grouped according to the divisions or departments within the organization. For example, all marketing jobs might be grouped together.
• Matrix Grouping: This is when jobs are grouped according to two or more criteria. For example, jobs might be grouped according to their functional responsibility, as well as their geographical location.

In summary, other approaches related to grouping of posts include functional grouping, geographical grouping, divisional grouping, and matrix grouping. These approaches allow for a more organized and efficient way of organizing jobs within an organization.

References

• Egeberg, M. (2007). How bureaucratic structure matters: An organizational perspective. w: M. Egeberg (ed.), The Handbook of Public Administration, 77-87.