Page 27 - E1 Integrated Workbook STUDENT 2018

Organisational structure

 Enables growth.  Duplication of
business functions.
Divisional  Clear responsibility
 Splits organisation for products/ regions.  Divisions may make
into several divisions. decisions to benefit
 Good training for themselves but,
 Either product based general managers perhaps, to detriment
or geographical allows senior of company overall.
based. managers to focus
on strategy.  Potential loss of
control.

 Allocation of central
costs difficult.

 Specialists may feel
isolated.

 Advantages of both  Dual command and
functional and conflict.
Matrix divisional structure.
 A combination of a  Time consuming
functional and  Flexibility. meetings.
divisional structure.
 Customer orientation.  Higher administration
 Requires dual  Encourages costs.
reporting to two teamwork and
different managers.
exchange of opinions

 Widely used for and expertise.
project management.

Illustrations and further practice

Now try TYUs 4 and 5 from Chapter 2.

Read illustration 1 from Chapter 2.

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