Professional Documents
Culture Documents
Organizing
Organizing
VP/COSMETICS VP/HOUSEHOLD
DEPT NEEDS DEPT
Production Production
Marketing Finance Marketing Finance
PRODUCT STRUCTURE
PRESIDENT
REGION I REGION II
Production Production
Marketing Finance Marketing Finance
GEOGRAPHICAL
PRESIDENT
Corporate Individual
Accounts Clients
Accounting Accounting
Marketing Finance Marketing Finance
CUSTOMER STRUCTURE
Advantages
• It facilitates diversification
• Decision-making and control is distributed
among the heads of the divisions or middle
management
• Responsibility and accountability of division
managers
Disadvantages
• Increase in cost due to the duplication of the
functional departments within each division
• Degree of decision-making (conflict with policies of
the central headquarters)
MATRIX STRUCTURE/ORGANIZATION
Matrix Organization combine the functional and divisional structures.
Workers belong to at least two groups at the same time.
CEO
Project Engineer
Analyst
Manager A
Advantages / Disadvantages
ADVANTAGE
• It promotes the development of teams within projects or
programs.
• It facilitates coordination
• Sharing of skills
DISAVANTAGE
• The two-boss system may create confusion
• Power struggle between a leader of the functional dept and
a leader of the project team.
Network Structure/Organization
Network structure is
formed by having a core
of full-time employees
working together with
outside partners who
provide support or
supply services.
• OUTSOURCING