Professional Documents
Culture Documents
Functional Structure
From Functional to Divisional Structure
Divisional Structure I: Product Structures
Divisional Structure II: Geographic Structure
Divisional Structure III: Market Structure
m
Matrix Structure
Network Structure and the boundary-
boundary-less organization
Organizational Theory
A functional structure is the bedrock of horizontal
differentiation. It is the first ³structure´ that
organizations adapt as they grow.
CEO
Functional Structure
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Organizational Theory
Reengineering Functional Structures
CEO
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Organizational Theory
Before and After Example of Reengineering
B. After
CEO
(continued)
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Organizational Theory
Moving to a Divisional Structure
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Product Division Structure
CEO
2 2 2 2
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Multidivisional Structure.
CEO
Functional
Managers
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Organizational Theory
2
²a divisional
structure in which specialists from the
support functions are combined into
product development teams.
Functions
Vice President Vice President Vice President Vice President Vice President
Research and Sales and Manufacturing Materials Finance
Development Marketing Management
Product
Development
Teams
2 2 2
Functional specialist
PTM Product Team Manager
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Organizational Theory
Divisional Structure II: Geographic Structure
Regional
Operations
m
Regional Regional
Operations Operations
Central Support
Functions
Individual
stores
Regional
Operations
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Organizational Theory
Divisional Structure III: Market Structure
CEO
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Organizational Theory
Matrix Structure
Vice President Vice President Vice President Vice President Vice President
Engineering Sales and Finance Research and Purchasing
Marketing Development
Product A
Manager
Product C
Manager
Product D
Manager
Two-boss employee
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Organizational Theory
A multidivisional matrix structure provides for
more integration between corporate and
divisional managers and between divisional
managers.
CEO
Automobile
Products
Division
Personal
Computer
Division
Consumer
Electronics
Division
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Organizational Theory
A recent innovation in organizational
architecture is the use of network structures.
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Organizational Theory
Network structures often
result from outsourcing.
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