This PPT slide, part of the 26-slide Organisation Design 101 - Best Practice PowerPoint presentation, presents an overview of five distinct organizational structure types, each corresponding to specific design criteria. The structures are categorized as Functional, Product, Market, Geographical, and Process. Each type is defined by its unique characteristics and selection criteria, which guide organizations in choosing the most suitable structure based on their operational needs.

The Functional structure is organized around activities or functions, such as sales and R&D. This approach is typically beneficial for smaller organizations or those with a single product line. It emphasizes efficiency in function, but may lack flexibility as the organization grows.

The Product structure focuses on product lines, allowing for a more efficient scale of operations. It is designed for organizations with multiple products, enabling them to manage separate customer needs effectively. This structure often supersedes the functional model, particularly in larger firms.

Market structures are organized based on customer segments or industries, facilitating rapid adaptation to market changes. This type is increasingly relevant for companies aiming to enhance customer engagement and tailor services to specific market demands.

Geographical structures arise as companies expand into new territories. They are useful when economies of location are significant, allowing for localized decision-making and service delivery.

Lastly, the Process structure organizes the company around complete workflows, such as order fulfillment. This is the newest of the structures and is particularly advantageous for organizations seeking to minimize cycle times and reduce working capital.

Understanding these structure types can provide valuable insights for organizations evaluating their design and operational strategies.

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Organizational Design