The unit textbook concepts for our discussion in this unit are: Functional Organ
ID: 395523 • Letter: T
Question
The unit textbook concepts for our discussion in this unit are: Functional Organizational Structure Divisional Organizational Structure Strategic Alliance Output Control Management By Objective Organizational Change Management Select one of these concepts and find a related article at Library Resources, Fortune Magazine (Links to an external site.)Links to an external site. or the Wall Street Journal (Links to an external site.)Links to an external site. (you can use the Wall Street Journal every unit for your discussions in this course - try an inexpensive student subscription).
Explanation / Answer
Functional structure
Functional structure can be defined as a structure in which all the positions are group into a similar pool. In which type of organisation employees are divided into functional areas such as marketing, engineering, as well as accounting idiot each and every segment has its different administrator. The type of structure provides intensive utilisation of specialised resources.
Division structure
This type of organisational structure is divided into divisions. This is structure is usually used by businesses for growing new products or markets by opening different divisions and creating soda divisions of the pre existing provisional availability of the organisation.
Divisional Structure
Link to article -https://www.wsj.com/articles/SB10001424052748704113504575264641145227612
General Motors is a very fine example of Divisional structure as company is focused on creating a divisional structure across the globe for implementation of their product selling services. This type of approach has provided them a competitive advantage into the national as well as international market.
Company has set up their division structure in different brands such as shifting the main brand two different sub brands where possibilities for product expansion as well as availability of diversification vary widely increases. For being able to communicate itself as a divisional structure General Motors has 6 divisions which are specifically decentralized and autonomous.
6 divisions inside structure of General Motors are as follows
By separately operating all of these specific divisions responsibility as well as accountability of each and every part of the organisation is easily traceable. Head of the department for these specific divisions provide extensive availability of moulding according to the changing needs as well as for measuring the performance for the specific division and for having an understanding of sales opportunities and better strategy implementation.
It also includes measurement of managerial and operative results as company can easily assess the quality of overall work done by separate and individual divisions inside the organisation. The only drawback which is included in this type of structure that it is run by intense internal competition which is usually not healthy for any organisation. As the competition is increasing there is possibility of lack of cooperation as each and every division is autonomous and has its own operative capabilities which could be disastrous for unified goal of the organisation.
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