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Chapter 6
Designing
Organizational
Structure:
Specialization and
Coordination
Copyright 2007 Prentice Hall 6- 1
Learning Objectives
1. Distinguish between three kinds of
divisional structures (product,
geographic, and market)
2. Explain why most organizations
initially have a functional structure and
why, over time, problems arise with
this structure that require a change to
a more complex structure
Describe how a divisional structure works
Explain why many organizations use this
structure to coordinate organizational
activities and increase their effectiveness
Increasing integration