Organizational Structures

Topics: Product management, Organizational structure, New product development Pages: 7 (1093 words) Published: December 17, 2012
|ORGANIZATIONAL STRUCTURE | Example | Handy’s Culture Type | |1. Functional | ACK | POWER / ROLE CULTURE | |2. Product | UNILEVER | TASK CULTURE | |3. Geographic | PIZZA HUT | ROLE CULTURE | |4. Matrix | NASA | TASK CULTURE | |5. Multi-Divisional | YSL | TASK / ROLE CULTURE | |6. Multi-Functional | SAMSUNG | TASK / ROLE CULTURE | |7. Virtual | Xbox 360 | TASK CULTURE | |8. Network | CHRYSLER | ROLE CULTURE | |9. Modular | DELL | ROLE / TASK CULTURE |

Functional organizational structures are the most common. A structure of this type groups individuals by specific functions performed. Common departments such as human resources, accounting and purchasing are organized by separating each of these areas and managing them independently of the others. Usually this type of organizational structure is available in small companies, universities or Banks. For Example, ACK ( Australian college of Kuwait ) in Kuwait they have a functional organizational structure. Culture Type, This college have power culture every decision have been made by the president and all the departments are working under the order of president and also they have Role culture because every teacher have their own role to teach the students.


It is a type of structure which is organized by product type. Each product group falls within the reporting structure of a senior leadership person and that person oversees everything related to that particular product line. For example, Unilever produces different types of personal care products. They have product organizational structure because different products have different managers who are under the board of directors. Culture Type, This company uses the Role culture because in these type of big industry every management of this different department want to make their product more attractive to the customers.


For organizations that cover a span of geographic regions, it sometimes makes sense to organize by the region. This is done to better support logistical demands and differences in geographic customer needs. Typically a structure that is organized by geographical regions reports up to a central oversight structure. For example, Pizza hut have the geographic organizational structure. They have their restaurants in different regions worldwide. They have different management in different region but they all report to the one president of the company. Culture Type, Pizza hut have role culture because every region management have to complete their role to do things according to the region culture.


A matrix structure provides for reporting levels both horizontally as well as vertically. Employees may be part of a functional group (i.e. production) but may serve on a team that supports new product development. This kind of structure may have members of different groups working together to develop a new product line. For Example, Nasa have the matrix organizational structure. Their departments are connected to each...
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