Organizations are made up of structures. Learn how to choose among the four basic structures as the primary organizing logic for your organization—function, product, geography, and customer.
All organizations are made up of just four structures,…function, product, geography, and customer.…These four options can be layered and connected…into many unique combinations.…Because structure determines the…basic power dynamics of an organization,…it's important to understand how structural choice…drives behaviors and decisions.…Let's look at each structure.…Functional structures group work by common activity.…For example, this pharmaceutical company…has one major product and is primarily…organized by business function.…
Research, manufacturing, product development,…clinical and regulatory affairs, marketing, and sales.…Functional structures promote standardization,…sharing of knowledge, and greater specialization,…and they help to reduce duplication of effort.…All organizations start off with…a simple functional structure.…But a functional structure can be effective…in a large company as the primary organizing logic,…as long as the company is in a single line of business.…But the functional structure becomes a barrier…
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- How organization design relates to strategy and talent
- Using the star model
- Mapping strategic priorities
- Setting the design criteria
- Assessing organization gaps and strengths
- Drawing organization models
- Setting up the matrix for success
- Clarifying decision rights
- Matching talent to organization