Companies with a functional structure
What is a functional structure?
In a functional structure, tasks and activities are grouped by business function, for example production/operations, finance/accounting, marketing, research and development, human resources management and management information system.
What is the difference between a functional organization and a business unit?
Whereas the fundamental principle of a conventional business unit struc- ture is to align accountability and control, the fundamental principle of a functional organization is to align expertise and decision rights. Thus the link between how Apple is organized and the type of innovations it produces is clear.
What is Apple's functional organization?
APPLE’S FUNCTIONAL ORGANIZATION is rare, if not unique, among very large companies. It flies in the face of prevailing management theory that companies should be reorganized into divisions and business units as they become large. But something vital gets lost in a shift to business units: the alignment of decision rights with expertise.
Does functional organisational structure work in a stable environment?
In the view of Griffin (2014), because such structure is not designed to change rapidly, functional organisational structure works well in a stable environment where business strategies are less inclined to need changes or updating.
[PDF File]Organizational structures of mining companies: composition ...
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The organizational structure of management of an industrial enterprise is a set of specialized functional units interconnected in the process of substantiation, development, adoption and implementation of managerial decisions within the framework of a single territorial-property complex.
[PDF File]Structuring Organizations - Virginia Tech
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sake of simplicity, we’ll focus on two types—functional and divisional organizations. Functional Organizations A functional organization groups together people who have comparable skills and perform similar tasks. This form of organization is fairly typical for small to medium-size
[PDF File]Functional structure and operational issues: An examination ...
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In a functional structure, tasks and activities are grouped by business function, for example production/operations, finance/accounting, marketing, research and development, human resources management and management information system.
[PDF File]How Apple Is Organized for Innovation
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As the Harvard Business School historian Alfred Chandler documented, U.S. companies such as DuPont and General Motors moved from a functional to a multidivisional structure in the early 20th century. By the latter half of the century the vast majority of large corpora- tions had followed suit.
[PDF File]Winning operating models - Bain & Company
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urgent than ever. Never before have companies faced such pressure to deliver new products to market so quickly—at a time when their organizations have never been more complicated and slower to act. New brands, new geographies, new cross-functional committees, new centers of excellence—and more—sound right as incre-
Structuring your organization to meet global aspirations
companies find the right structure for their situation. Be clear about what needs to be global. Globalizing businesses, products, or functions can make it easier to capture strategic and cost benefits, and to share knowledge and skills to drive innovation. This could mean moving from a geographic structure—say, three regional product
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