This organisational structure is one of the most complex organisational structures. The main object for development of this structure was to complete a particular project or a special task. Hence, for this purpose, employees from different departments of the organisation work together temporarily. For eg. while developing a new product most of the experts from different fields are required like research and development, finance, engineering etc. this structure has no specific flow of authority. The subordinates may have more than one boss to report to e.g. functional manager and project manager. Supervision of project is handled by project manager while departments such as marketing, engineering etc. are headed by functional managers. …show more content…
To provide better oversight of the operations, it separates its various functions. Some of the main divisions of the company’s organisational structures are facilities, retail, research and development, networking and operations and support. It becomes easy for the employees in these departments to communicate freely and quickly with the others in the same line of work as there is a clearly shown or described, horizontal management infrastructure for each of these branches. This method enables easy access to those at the top of the organisation. The upper corporate management and customer- facing personnel openly engage with each other which is the pride of the company. This makes the employees feel that they are an important part of the organisation and creates a feeling of loyalty and boosts retention. This scenario increases the control over individual projects and operations which gives the highest possible chance of success no matter what the challenge …show more content…
It is a division that is based on product, market and geographical area in which the organisation operates. Eg. if there are three different product lines in an organisation, it would have three different or separate divisions for these product lines. Decision making powers are given to the division heads so that they can take effective decisions to respond to the change in their markets or area of responsibility quickly. A possible disadvantage may be that some of the departments like finance department are created in each division which can lead to increase in cost due to unnecessary duplication of work.
Example: - Divisional structure based on products.
The Coca Cola Company follows a divisional organisational structure. It has an international divisional structure as its international staffs operate separately and in isolation from the head office. The company has various divisions all around the world and each division is headed by presidents that control each continental division. There are five continental divisions: -
• Eurasia & Africa Group
• Europe Group
• Latin America Group
• North America Group
• Pacific Group
There are vice presidents for each continental divisions that control sub–divisions based on regions or