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Organizational Strycture

In: Business and Management

Submitted By teri8577
Words 1645
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Functional Organization Structure

Functional organizations are structured around job functions. This type of business structure is suitable for small to medium-sized businesses that do not have a wide range of products or production requirements.
Product Organization Structure

Product organization structures lend well to organizations such as department stores and supermarkets. When these organizations operate in multiple regions, a hybrid between geographical and product organization structures is suitable.
Matrix Organization Structure

Geographical structures are organized, as the name implies, by geographic area or region. Each region is its own complete entity; its goals tied to the overall goals of the business. There is usually a regional manager overseeing the entire operation, who will report to head office, but will otherwise have complete responsibility for the regional unit. The above chart gives an example of a North American geographical structure. The same can be applied internationally, where regions are split up by continents or subcontinents. Automobile manufacturers and multinational fast-food chains often follow this business organization structure. In some cases, products will remain the same across all regions, while in other cases, a product may be slightly modified or a new product introduced to meet local needs.

The matrix organizational structure is one of the newer methods for running a company and is based more on teams than on individual departments. This configuration combines the functional organization with more of a product organization. A product organization is based directly on the manufacturing of a specific product by different groups within the company.
In the matrix organizational structure the upper echelon are the top managers- usually consisting of a president/CEO, vice president, and any general managers.…...

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