Technological grouping-definition

Technological Grouping

Technological grouping is an organisational structure where a company divides its operations based on the specific technology required for different stages or aspects of its activities. This approach is commonly found in manufacturing industries and allows for efficient management of diverse technological processes.

Key Points

Division by Technology

• Technological grouping involves organising an organization's functions or departments based on the specific technology or production processes required.
• In manufacturing, departments may be created for design, machining, welding, assembly, and quality control, each focusing on a distinct technological aspect.

Suitable for Complex Production Stages

• This structure is particularly suitable for organizations with complex production processes involving distinct technological stages.
• It is most effective when there is a natural flow of production from one technological stage to the next, ensuring seamless operations.

Specialisation and Training

• Technological grouping allows for increased specialisation among employees as they focus on specific technological systems.
• Training efforts become more concentrated and efficient, as employees only need to master one particular technological aspect.
• An automobile manufacturer may have specialised teams for engine design, bodywork fabrication, and electrical systems, each with its technological focus.

Efficient Problem Identification

• When issues or problems arise within the production process, it becomes easier to identify the specific stage or department where they originated.
• A semiconductor manufacturer can pinpoint defects in the fabrication process more efficiently when the technology-based structure is in place.

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Technological grouping-definition

Business Management

Manufacturing Industry Prevalence

• Technological grouping is commonly used in the manufacturing industry, where products undergo multiple stages of production.
• It is less frequently seen in the service sector, where the focus is often on service delivery rather than distinct production processes.

Benefits for Complex Production

• For organisations with intricate production requirements, technological grouping can enhance operational efficiency.
• Resource allocation and workforce management become more effective when tailored to specific technological needs.

Streamlined Production Flow

• The structure ensures a smooth and coordinated workflow from one technological phase to another, reducing disruptions.
• A computer manufacturer may have divisions specialising in hardware design, software development, and quality assurance, ensuring a streamlined product development process.

In summary, technological grouping is an organizational approach that divides operations based on the specific technology or production processes required. It is particularly suitable for manufacturing industries with complex production stages, offering benefits such as increased specialisation, efficient problem identification, and streamlined production flow.