Company Strycture (Маккензи, pp 21-22)

Most organizations have a hierarchical or pyramidal structure.

Here we can see one person or a group of people at the top, and an increasing number of people below them at each successive level.

There is a clear line or chain of command running down the pyramid.

All the people in the organization know what decisions they are able to make, who their superior is, and who they immediate subordinates are.

5. There are 4 main types of company structure: line structure, matrix structure, functional structure, staff position.

Today the most large manufacturing organizations have a functional structure. (Henry Ford, the French industrialist, was the inventor of this structure).

It includes production, finance, marketing, sales, and personel or human resources departments.

This means for example, that the production and marketing departments cannot take financial decisions without consulting the finance department.

Functional organization is efficient. But there are 2 standart criticism.

10. First: people are usually more concerned with the success of their department then that of the company.

So there are permanent battles between different departments, which have incompatible goals.

Secondly, separating functions is unlikely to encourage innovation.

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