This PPT slide, part of the 103-slide Organization Design Toolkit PowerPoint presentation, outlines various organizational structures that businesses can adopt, emphasizing the importance of selecting a structure that aligns with different operational needs. It categorizes these structures into 5 main types: Functional, Product-based, Geographic-based, Customer-based, and Matrix structures. Each type serves distinct purposes and can be tailored to fit specific business requirements.
The Functional structure organizes teams by their functions, such as marketing, sales, and production, under a centralized board. This structure is straightforward and effective for smaller organizations, but may become cumbersome as a company scales. The Product-based structure focuses on specific product lines, allowing for specialized teams dedicated to each product category, which can enhance accountability and performance.
Geographic-based structures are designed for organizations operating in multiple regions, enabling localized decision-making and responsiveness to regional markets. The Customer-based structure emphasizes client needs, organizing teams around customer segments to improve service delivery. Lastly, the Matrix structure combines elements from various structures, promoting flexibility and collaboration across departments.
The slide also hints at hybrid structures, which blend different types to meet diverse business demands. For instance, a utility company might integrate centralized services with a process-based approach, allowing for both efficiency and specialization. This flexibility can be crucial for large organizations that face varying operational challenges across different segments.
Understanding these structures is vital for executives looking to optimize their organizational design. The right structure can lead to improved efficiency, better resource allocation, and enhanced responsiveness to market changes. This slide serves as a foundational overview for decision-makers considering how to best align their organizational framework with strategic goals.
This slide is part of the Organization Design Toolkit PowerPoint presentation.
This presentation is created by a team of ex-EY consultants. It provides a robust framework used by tier-1 strategy consulting firms for Organizational Design and its implementation.
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