ORGANIZATIONAL STRUCTURE

Organizations are structured differently depending on the product. The most appropriate structure is the one that meets the objectives of the organization. Organizational structures range along a continuum from a functional orientation to a product orientation. A functional organizational structure, for example, arranges departments according to technical discipline—research and development, supply chain, human resources, manufacturing, sales, finance, and so on. Functional structures are usually instituted to support companies whose products are too complex for one person or team to oversee or produce alone.

In a project structure, in contrast, departments are set up to align with the product they produce, not their ...

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