BU398 Lecture Notes - Lecture 4: Product Manager, High High, Railways Act 1921
Document Summary
Structure is essentially about lines of communication: reporting relationships, hierarchy, span of control, department groupings. Communication across functional areas is more difficult (only happens at high levels) Just a messenger, just fulfilling orders that come from above. Activities (+ ppl) grouped together by common function. Functions can include: hr, accounting, marketing, manufacturing, design, engineering, legal etc. Communication mainly happens among ppl working on the same product. Coordinating across products is more difficult (happens at high levels) The two different managers have to be on the same page and filter it back through their department. Activities (= ppl) grouped together by product / org output. Smaller span of control (easier to keep control) Integration and standardization across product lines difficult (opposite of pros of functional) ** note: if an org has only 1 product, it is a functional structure. Decentralizes decision making (decisions made lower down) Departmentation: functional, divisional, geographical, matrix, horizontal, virtual, hybrid.
