Corporations use organizational structures that place key positions over the situational needs of the industrial operations. Many manufacturing firms divide industrial organizational structure by departments within a single facility. For some companies, the diversity of products dictates a need for departments to oversee product groups. Other business organization structures serve the geographical location of various facilities with branch divisions.
This type of industrial organizational structure divides a staff into departments by duties. A director or vice president in charge of each function reports directly to the CEO or president. Functions include manufacturing, engineering, marketing and finance. Each department handles functions such as human resources if a separate department for such does not exist. Managers take charge of the divisions under functions such as budgeting and accounting under finance, and sales and advertising under marketing.
Companies that produce or market a large variety of products use business organization structures that divide key positions to manage each product group. The CEO of an electronics firm, for instance, assigns a director to each product division such as cellphones, TVs and monitors. Each division has a similar structure with a manager in charge of production, marketing and engineering. Department stores use product divisions with a manager in charge of each department.
Retail and restaurant operations often sell different products to accommodate differing cultural markets. Some companies have various departments in different facilities. A hypothetical textile producer may has two or more mills producing fabric goods in different states or countries. The company home office is in another state, and the sales office is in yet another office location. In each case the store, restaurant, mill or branch has its own organizational structure over various departments.
Multiple Focus Structuring
Some companies mix the divisions of products and functions in a grid. The directors of marketing, engineering, and manufacturing have charge over every product division for a producer of leather goods, for example. Then each product division has its own similar management structure to handle the product divisions. There’s a different manager in charge of marketing, manufacturing, development, finance and human resources for the horseman products, motorcycle riders products, automotive materials and furniture manufacturing materials.
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