chp 9 - has more integration more horizontal and vertical...

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what is the difference between vertical differentiation and horizontal differentiation differentiation and integration are the two design concepts that grown how a structure will work. Vertical differentiation reflects how a company choose to allocate its decision making authority, and horizontal differentiational activities into functional and division. 4. What are the principal differences between a functional structure and a multidivisional structure? Why does a company change from a functional to a multidivisional structure? A functional structure is simpler and is used for one business. A multidivisional structure
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Unformatted text preview: has more integration, more horizontal and vertical differentiation. Corporate headquarters is a level with a division of labor between corporate and divisional managers. Control increases because corporate managers oversee and measure divisional performance. An internal labor market allows for the promotion of divisional managers to corporate positions. A company adopts a multidivisional structure because the number and complexity of different products cause control issues....
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This document was uploaded on 03/26/2012.

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