AccounLanL ln 8uslness

ÞAÞL8 l1
lunC1lCnAL
WlLh a funcLlonal sLrucLureţ an organlzaLlon wlll dlvlde lLself lnLo Lhe ºvarlous
funcLlons" LhaL musL be performedŦ Lach employee wlll Lhen be asslgned
Lo one funcLlon or groupŦ ConsequenLly each funcLlon wlll Lhen have lLs
own peopleţ resourcesţ budgeLs and LargeLsŦ
CASL S1UD¥
Mcomp ls a relaLlvely small (60 employees) oLganlzaLlonŦlL makes and markeL
and a slngle producL ţmaLLressesŦ Clven Lhe slmpllclLy of Lhe company's
acLlvlLlesţ Lasks can be easlly separaLed by funcLlon(lŦeŦ markeLlngţ flnanceţ
admlnlsLraLlon eLc)Ŧ1herefore lL would make Lhe mosL sense for Mcomp Lo
follow a funcLlonal organlzaLlonal sLrucLureŦ
lunC1lCnAL S18uC1u8L
MComp
ÞroducLlon MarkeLlng
llnance
Puman 8esources
Þ8CuuC1
AdopLlng a producL means an organlzaLlon wlll dlvlde lLself" along producL llnesŦ"1hls
Lype of sLrucLure ls ofLen followed by organlzaLlon LhaL makes mulLlple producLsŦ
CASL S1UD¥
Mcomp has expanded and dlverslfled over Lhe yearsŦ 1he organlzaLlon now also makes
bedsţ plllows cases ln addlLlon Lo maLLressesŦ Mcomp now has Loo many producLs and
employees Lo follow a slmple funcLlonal organlzaLlon sLrucLure anymoreŦ lollowlng
a producL ls now more approprlaLe as Lhe organlzaLlon can dlvlde lLself by Lhe
producLs lL makesŦ
Þ8CuuC1 S18uC1u8L
Mcomp
MaLLress
ulvlslon
Þlllows
ulvlslon
Þlllows cases
ulvlslon
8eds ulvlslon
Lach producL group would Lhen have lLs own funcLlonal deparLmenLal (lŦeŦ P8ţ
llnanceţ MarkeLlng eLc)
ulvlSlCnAL
An organlzaLlon sLrucLured around llnes wlll segmenL lLself ln llne wlLh Lhe ºdlfferenL
markeLs or lndusLrles lL servesƍŦ 1hls Lype of organlzaLlon sLrucLure ls ofLen
followed by companles LhaL serve mulLlple markeLs and have more Lhan one
producL for each of Lhose markeLsŦ
CASL S1UD¥
Aero1 ls an organlzaLlon LhaL manufacLures several dlfferenL Lypes of alrcrafLŦ 1he
organlzaLlon serves four dlfferenL markeLsť mlllLaryţcommerclalţLransporL and Lhe
llghL alrcrafL markeLŦ Aero 1 makes several models of planes for each of Lhese
speclflc markeLsŦ1hereforeţa dlvlslonal as opposed Lo producL organlzaLlon
sLrucLure would be Lhe mosL appllcable for Lhls organlzaLlon
ulvlSlCnAL S18uC1u8L
Aero 1
LlghL
AlrcrafL
1ransporL
AlrcrafL
Commerclal
AlrcrafL
MlllLary
AlrcrafL
Lach dlvlslon would Lhan have lLs own funcLlonal deparLmenLs(lŦeŦ
P8ţllnanceţMarkeLlng)
uLÞA81MLn1AL
SLrucLurlng an organlzaLlon ln llne wlLh cusLomer needs creaLes a deparLmenLal
organlzaLlon sLrucLureŦ Pere an organlzaLlon dlvldes lLself lnLo a collecLlon of
dlfferenL deparLmenLsŦ Lach deparLmenL Lhen becomes responslble for provldlng a
speclflc funcLlon or servlce Lo all Lhe cusLomers of Lhe organlzaLlonŦ
CASL S1uu?
C1v ls an organlzaLlon LhaL provldes cable Lelevlslon servlcesŦ Slnce lL ls predomlnaLely
a servlces companyţ 1v follows a deparLmenLal organlzaLlon sLrucLureŦ 1he
company ls dlvlded lnLo a seL of four deparLmenLsť markeLlngţ bllllng and enqulresţ
afLer sales servlce and lnsLallaLlonŦ Lach deparLmenL represenLs a speclflc servlces
LhaL C1v's cusLomers would requlreŦ
uLÞA81MLn1AL S18uC1u8L
C1v
MarkeLlng 8llllng and
Lnqulres
AfLer Sales
Servlce
lnsLallaLlon
Lach deparLmenL would Lhen have lLs own funcLlonal deparLmenLs(lŦeŦ
P8ţllnanceţ MarkeLlng eLc
CLCC8AÞPlCAL A8LA
CrganlzaLlons LhaL ºoperaLe ln mulLl reglons or counLrles" wlll ofLen sLrucLure
Lhemselves along geographlc llnesŦ Lach dlvlslon or group wlll be responslble for
provldlng Lhe organlzaLlon's producLs or servlces Lo a speclflc counLry or reglonŦ
CASL S1uu?
SLlllWaLer ls an organlzaLlon LhaL dlsLllls and sells mlneral waLerŦ 1he company sells lLs
producLs across Lhe globeŦ 1herefore SLlllWaLer follows a geographlcal sLrucLureŦ
1he company has dlvlded lLs self lnLo four groupsţ wlLh each group belng ln change
of a parLlcular reglonŦ
CLC8AÞPlCAL A8LA S18uC1u8L
SLlllwaLer
Asla Þaclflc
8eglon
Mlddle easL and
Afrlca 8eglons
Lurope and
Amerlca 8eglon
lar LasL and
AusLralla 8eglon
Lach reglon would Lhen have lLs own funcLlonal deparLmenLs (lŦeŦ P8ţ
llnanceţ MarkeLlng eLc)
MA18lx
1he maLrlx organlzaLlonal sLrucLure was developed by Lhe 8osLon ConsulLlng Croup
and ls sulLed for very large organlzaLlon LhaL operaLe across mulLlple producL llnesŦ
1hls Lype of sLrucLure ls baslcally a ºcomblnaLlon of Lwo of Lhe Lypes of
organlzaLlon sLrucLures" descrlbed prevlously (lŦeŦ funcLlonalţ dlvlslonalţ
deparLmenLal and geographlc)Ŧ 1he unlque characLerlsLlc of Lhls Lype of sLrucLure
ls LhaL each employee ls a member of Lwo dlfferenL deparLmenLs slmulLaneously
and has Lwo bossesŦ
CASL S1uu?
Company 123 ls a manufacLurer of pressure valvesţ bollers and oLher lndusLrlal
equlpmenLŦ 1he organlzaLlon sells lLs producL across boLh Amerlca and LuropeŦ
Poweverţ glven LhaL lndusLry speclflcs vary from counLry Lo counLryţ123 cannoL
have sLandardlzed producL LhaL lL can sell across all Lhe markeL lL servesŦ
1he organlzaLlon Lherefore has declded Lo follow a maLrlx organlzaLlon sLrucLureŦ123
has dlvlded lLself across Lwo llnesţ geographlc and funcLlonalŦ Lach employee wlll
be member of a speclflc reglonal deparLmenL and a speclflc funcLlonal deparLmenL
slmulLaneouslyŦ
MA18lx
CASL S1uu?
lor exampleţ a manager ln Lhe producLlon deparLmenL wlll be parL of Lhe producLlon
deparLmenL as well as elLher Lhe Amerlca reglon or Lhe Lurope reglon
deparLmenLsŦ
MA18lx S18uC1u8L
123
ÞroducLlon
Lurope 8eglon
ÞroducLlon
Lurope
MarkeLlng
MarkeLlng
Lurope
ueslgn
ueslgn Lurope
8esearch and
uevelopmenL
8esearchƎ
uevelopmenL
Lurope
Amerlca 8eglon
ÞroducLlon
Amerlca
MarkeLlng
Amerlca
ueslgn
Amerlca
8esearchƎ
uevelopmenL
Amerlca
S?nCÞSlS
LnLrepreneurlal
luncLlonal
ÞroducL
ulvlslonal
ueparLmenLal
Ceographlc
MaLrlx
1ypes of
organlzaLlonal
sLrucLure
no flxed sLrucLure
SLrucLured around varlous funcLlons
SLrucLured around producLs
SLrucLured around dlfferenL
markeLs/lndusLrles
SLrucLured around deparLmenLs
SLrucLured around geographlcal llne
ComblnaLlon of Lwo sLrucLures

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