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When using divisional structures that are organized by either markets or geographic areas they generally have similar functions and are located in different regions or markets. This allows business decisions and activities coordinated locally. The disadvantages of the divisional structure is that it can support unhealthy rivalries among divisions.
Unlike the M-form, the U-form is a business structure by which the senior management of a corporation closely supervises its various component "departments" and retains control of all strategic and decision making processes. While this model allowed for unification and consistency, it limited companies from growing and expanding into other markets.
Choosing a structure for a company is an important decision and must be strategically thought out because it could either aid or harm the making of business. The structure must also be a good fit for the type of activities, goals, and vision of the company. [3] The organizational structure is a reflection of how conveniently business is conducted.
The system must be tailored to the needs of the organization and adapted continually as circumstances change. In a general sense, managers engage in systems design on a day-to-day basis when they plan activities and organize systems to accomplish objectives. Specialized staff groups have evolved to perform tasks such as long-range planning ...
Business systems planning (BSP) is a method of analyzing, defining and designing the information architecture of organizations. It was introduced by IBM for internal use only in 1981, [ 1 ] although initial work on BSP began during the early 1970s.
For example, by having staff in an engineering group who have marketing skills and who report to both the engineering and the marketing hierarchy, an engineering-oriented company produced "many ground-breaking computer systems." [4] This is an example of cross-functional matrix management, and is not the same as when, in the 1980s, a department ...