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Unformatted text preview: Structural Design Options for Grouping Employees into Departments Functional Grouping CEO Engineering Marketing Divisional Grouping Product Division 1 Manufacturing CEO Product Division 2 Product Division 3 Source: A dapted from David Nadler and Michael Tushman , Strategic Organization Design (Glenview, Ill.: Scott Foresman , 1988), 68. Strengths and Weaknesses of Functional Organization Structure b STRENGTHS: • Allows economies of scale within functional departments • Enables in-depth knowledge and skill development • Enables organization to accomplish functional goals • Is best with only one or few products Source: A dapted from Robert Duncan, “What Is the Right Organization Structure? Decision Tree Analysis Provides the Answer,” O rganizational Dynamics ( Winter 1979): 429. b WEAKNESSES: • Slow response time to environmental changes • May cause decisions to pile on top, hierarchy overload • Leads to poor horizontal coordination among departments • Results in less innovation • Involves restricted view of organizational goals ...
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This note was uploaded on 09/30/2011 for the course MANAGMENT MAN4201 taught by Professor Baker during the Fall '11 term at UNF.

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