Explain the principal differences between a functional structure and a multidivisional structure? What are the contributing factors that motivate companies to change from a functional to multidivisional structure?
Define the function of integrating roles in the organization and how integration factors shape the process.
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Function organizations are usually first "structure" that organizations adapt as they grow. Jobs become specialized in this organizational function. For example, operation specialists, HR specialists and Accountants are hired to handle these departments. They report to the Chief Executive Officer but are usually responsible for the day to day operations or "functions" of their job (i.e. hiring, firing, decisions, etc). These specialists are better equipped to handle decisions in their area of expertise and eliminate the CEO from having to make mundane decisions on day-to-day issues. However, these specialized groups tend to focus on their own departments and not the ...
The principle differences between functional and multidivisional structures are examined.