ZIMSEC O Level Business Studies Notes: Product based Organisational structure
- This is when organisational operations, departments, duties and tasks are grouped based on particular lines of goods and services.
- The organisation’s structure is based on major product lines and services
- This usually involves organising the business into departments, each of which focuses on a different product
|The structure is market oriented (Focused on markets)||There is duplication of resources and functions e.g. Accounting departments may be required across all departments|
|Different departments are forced to coordinate accross all functions||There is less top management control|
|Is flexible||Complicates the coordination process|
|An entrepreneurial spirit is fostered||Hostile competition between departments can prevent the organisation from achieving its strategic goals|
|Friendly competition between departments can encourage hard work|
To access more topics go to the O Level Business Notes page.