3.

Product Organizational Structure

Another common structure is to be organized by a specific product type.

Each product group falls within the reporting structure of an executive and
that person oversees everything related to that particular product line.

For example an executive over Kraft products would be responsible for

every product under that label dressings, meats, sauces, etc.

The advantage of this type of structure is that it organizes products by

category but can create completely separate processes from other product
lines within the organization.

4. Customer Organizational Structure

Certain industries will organize by customer type. This is done in an effort

to ensure specific customer expectations are met by a customized service
approach.

An example of this would be in healthcare. A patient seen as an outpatient

has very different needs than those of patients who spend time in the
hospital as inpatients. A customer centered structure creates customized
care for those patients.

The advantage of this type of structure is that it specializes in the needs of

each customer group but can ignore the needs of different customer types.