Product Grouping vs Function Grouping — страница 2

means of communication among specialists exist in the organization and when the specialists are effective in resolving the inevitable cross-functional conflicts. These recent behaviorists studies point to the following three questions that managers must consider when they choose between a product or functional basis of organization. How will the choice affect differentiation among specialists? How does the decision affect the prospects of accomplishing integration? How will the decision affect the ability of organization members to communicate with each other resolve conflicts and reach the necessary joint decisions? There appears to be a connection between the appropriate extent of differentiation and integration and the organization’s effectiveness in accomplishing its

economic goals. What the appropriate pattern is depends on the nature of external factors – markets, technology and so on – facing the organization, as well as the goals themselves. The question of how the organizational pattern will affect individuals members is equally complex. Management must consider how much stress will be associated with a certain pattern and whether such stress should be a serious concern. To explore in more detail the significance of modern approaches to organizational structuring, we shall describe one recent study conducted in two manufacturing plants – one organized by product, the other on a functional basis.