Basic Forms of Organizational Structure
Objective 6-4 Explain the differences among functional, divisional, matrix, and international organizational structures and describe the most popular new forms of organizational design.
Organizations can structure themselves in an almost infinite number of ways; according to specialization, for example, or departmentalization, or the decision-making hierarchy. Nevertheless, it is possible to identify four basic forms of organizational structure that reflect the general trends followed by most firms: (1) functional, (2) divisional, (3) matrix, and (4) international.
Functional Structure
Under a functional structure, relationships between group functions and activities determine authority. Functional ...
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