cameron and green making-sense-of-change-management

198Table 5.1Advantages and limitations of different types of organization structureStructure Entrepreneurial Functional Divisional by product, Matrixgeography or bothMain features Organized Organized around tasks to Divisions likely to be profit Double definition of profitaround one be carried out. centres and may be seen as centres.central figure. Centralized. strategic business units for Permanent and full dual controlTotallyplanning and control purposes. of operating units – though onecentralized;Divisions/business units headed will be generally more powerfulno divisionby general managers who have than the other.of responsibility. responsibility for their own Authority and accountabilityresources.defined in terms of particularDecentralized.decisions.Situations Simple Small companies, few plants, Growing in size and Large multi-product,where companies in limited product or service complexity. multinational companies withappropriate early stages of diversity. Appropriate divisional/ significant interrelationshipstheir Relatively stable situations. business splits exist. and interdependencies.development. Organizations growing Small sophisticated servicethrough mergers andcompanies.acquisition.Turbulent environments.When producing a numberof different products orservices.Geographic splits withcultural distinctions incompany’s markets.