Management Structures

[amuseG]

Could anyone in-depthly explain all the management structures needed for the exam and examples of each to just clear up my misconceptions of this

Thank you

[mybishthing]

Hey mate,
the easiest way to get your head around the management structures is this...

There are four types of hierarchical organisation structures.

Functional - a form of traditional organisational structure that is based on the functions performed.
For example you have a finance, HR, operations and research and development (most commonly used with LSOs)


Geographic -structure based on divisions according to location.
For example you have a shop in Australia, UK, USA and so on (so if you are merging with a country overseas you would adopt this structure)


Product-based - departments where employees are grouped together according to the product they make or sell.
For example Myer or David Jones has a shoe section, electronics and sport sections.


Customer-based - departments based on the types of customers dealt with by a group of employees.
For example a car manufacturer will have a sales department section for fleet sales and another one for business or retail sales.

REMEMBER YOU CAN USE A COMBINATION, TRY AND PUT THIS IN YOUR ANSWER IF IT IS ELIGIBLE. FOR EXAMPLE AN LSO IN AUSTRALIA MERGING WITH ONE IN CHINA WILL NEED A GEOGRAPHICAL STRUCTURE BUT CAN ALSO INCORPORATE A FUNCTIONAL STRUCTURE

[philremington]

Vertical
This is the top-down mgt, not seeming to be used anymore

Horizontal (flat)
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Function - grouped by a function or job

E.g. the H.R. $$. R&D marketing etc
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Division

Divisional (inside division is two types)
Division Product
for businesses with a large product range, e.g. Mitsubishi has air cons, motors, fridges and lots of products

Divisional Geographic - grouped by area

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Matrix stucture

this is for fast moving consumer products

what questions do you have in particular

remember the best structure is based on the companies strategy

STRATEGY DRIVES STUCTURE