Insurance Company by Product Lines Product Line Departmentalization Output-Oriented Divisionalized Forms


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Insurance Company by Product Lines Product Line Departmentalization Output-Oriented Divisionalized Forms

Barclay College, US has reference to this Academic Journal, Output-Oriented Divisionalized Forms Product Line Departmentalization Product line structure is a design that groups similar or related products together. Insurance Company by Product Lines

 Petroro, D. Barclay College


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Product Line Divisions alongside Corporate Support Units This structure provides centralized support functions/services in consideration of the needs of several different product lines. Levi Strauss ? Product Lines alongside Corporate Support Units Product Team Structure ? ? ? ? PTM ? ? ? ? PTM ? ? ? ? PTM Product Development Teams Product Division Product Division Product Division PTM -Product Team Mgr ?-Functional specialists

Product Team Structure The Product Team structure is a cross between the product division structure where support functions are centralized in addition to the multi-divisional structure where each division has its own support functions. It is used primarily where the focus of the industry is on product customization. The functional orientation of specialists is seen as not in the best interests of the product divisions. Process Departmentalization Process structure is a design that group similar organizational processes together. These processes are usually technologically-based, but not always. An Example ? Process Departments A metalworking company

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Customer Departmentalization Customer-based structure is a design that groups similar customer groups together. Geographic/Territory Departmentalization Geographic or territorial structure is a design that groups similar/localized regions together. A Geographical Division Firm

Wal-Mart?s Corporate Structure A geographically-based set of divisions, including international Advantages of Divisional Forms Evaluate departments as autonomous profit centers Facilitate coordination between functions in consideration of rapid response Add flexibility so that a firm?s structure Focus on client needs Develop broadly trained managers Disadvantages of Divisional Forms Increase coordination problems between specialized functional/divisional areas Lead so that decreased communication between functional specialists across divisions Contribute so that a lack of clarity of functional area responsibilities in addition to a duplication of services

Strengths of Divisional Forms Suited so that fast change in unstable environment Client satisfaction because product responsibility & contact points are clear High coordination across functions Units adapt so that differences in products/processes/territories Best in large organizations Best when several product/services are offered Weaknesses of Divisional Forms Lose economies of scale in functional departments Poor functional coordination across division lines Lose in-depth competence & technical specialization Integration & standardization across division lines is difficult The Conglomerate Design (Multi-Divisional, SBU) Pearson PLC, a British firm, uses a conglomerate form so that manage several unrelated businesses. Conglomerate forms usually result from unrelated diversification, in addition to act as a ?holding company.?

Petroro, D. General Manager

Petroro, D. is from United States and they belong to General Manager and work for KMLE-FM in the AZ state United States got related to this Particular Article.

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