Organizational Structure Types and Selection Criteria PPT

This PPT slide, part of the 26-slide Organisation Design 101 - Best Practice PowerPoint presentation, outlines various organizational structure types that can be adopted based on specific design criteria. It categorizes these structures into 5 distinct types: Functional, Product, Market, Geographical, and Process. Each structure type is briefly described, highlighting its primary characteristics and the contexts in which it is most effective.

The Functional structure is centered around the activities or functions within the organization, such as sales or R&D. This type is typically suited for smaller organizations or those with a single product line. The Product structure, on the other hand, organizes the company by product lines and is designed for efficiency at scale. It emphasizes the importance of product-focused strategies, especially in environments with multiple products targeting different customer segments.

The Market structure is organized around specific markets or customer segments, allowing for rapid adaptation to changing market dynamics. This structure is particularly beneficial for organizations that need to respond quickly to customer demands. The Geographical structure is relevant for companies expanding into new territories, organizing operations based on geographical areas to leverage local advantages.

Lastly, the Process structure is described as the newest organizational design, focusing on workflows and processes rather than traditional functional hierarchies. It aims to streamline operations and reduce cycle times, making it an attractive option for organizations looking to innovate.

Overall, the slide serves as a foundational overview for executives considering how to align their organizational structure with strategic goals. Understanding these types can guide decision-making in designing an effective organizational framework.

This slide is part of the Organisation Design 101 - Best Practice PowerPoint presentation.

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