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ID: 2746364 • Letter: H
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home / study / business / operations management / questions and answers / (10 points) use one organization -- real or made-up ... Your question has been answered! Rate it below. Let us know if you got a helpful answer. Question (10 points) Use one organization -- real or made-up -- to illustrate the similarities and differences among functional structure, product division structure, and multi-division structure. Be sure to clearly describe each of the three types of structure (3 points). Give a concrete and specific example of structural features that would be the same in all three structures (3 points), and a concrete and specific example of what would be different in all three structures (3 points). Be sure that your answer is clear and internally consistent (1 point). ****PLEASE GIVE CONCRETE EXAMPLES OF STRUCTURAL FEATURES THAT WOULD BE THE SAME IN ALL THREE STRUCTURES AND STRUCTURAL FEATURES THAT WOULD BE DIFFERENT IN ALL THREE STRUCTURES!!!! THANK YOU*****
Explanation / Answer
We will take example of Health Insurance firm named ABC Insurance Ltd.
Functional Structure – In this structure teams are created based on common functions. There will be Sales and Marketing team, HR, Accounting and Taxation, Underwriting and Claims, Pricing team etc. all are controlled by top management. Functional structure is more technical and less business oriented.
Product Division structure – In this structure suppose ABC Insurance specializes in two products names X and Y then there will be two divisions where each division corresponds to the service offered by that products. A divisional structure is less hierarchical than functional structure.
Multidivisional structure – Multidivisional structure is sandwich between functional and product division structure where very specialized work will still be functional while job that require common process will have divisional structure. For ABC insurance Risk Management team can be different from product division A and B. or Investment team can be different and not at in hierarchy of A and B division
Functional structure are bottom up and are bureaucratic structure they are suitable for small/mid size firm with very less products and firm which have stable environment mostly Government companies.
Divisional structure has clear accountability and coordination but have greater resource requirement, difficult integration and no specialization
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