How do the product division structure and the multidivisional structure differ?
Out of all factors of production such as land, labor, capital and organization along with manpower organizaton is considered to be one of the prime source for existence of the business. The effective working of the organizations can be improved through well designed structure.
Structure is defined as an outline of duties fort he proper division of workforce. The organizational structure is segmented into functional structure, divisional structure, product structure, matrix structure, hybrid structure and network structure.
There is quite difference between product division and multi divisional structure are as follows which helps the organization in improving the future objectives. Product structure is that which concentrates the core product of the organization. Whereas, multi divisional structure highlights the overall performance of the products existing in the organization.
Product Division Structure :
1 - ) It splits the entire production fundtion into various product lines.
2 - ) It is coordinates and controls the core support centralized.
3 - ) I is product centric approach.
4 - ) In a prodct division the operations are centralized.
5 - ) It is can operated for a unique product or individual industry.
6 - ) It consists of interdependent modes in the operations that product after product.
7 - ) Product structure process through functional teams.
Multi divisional Structure :
1 - ) It splits each product production process into multiple divisions and set up its own supportive functions.
2 - ) It is main source for core operations.
3 - ) It is departmental support approach.
4 - ) In multi divisional structure the operations are self – contained.
5 - ) It is operated on the bases of corporate mode such it can control various business activities.
6 - ) This structure consists of independent modes of operating divisions.
7 - ) In this structure each team is divided and process into multiple divisional functions.
The association GM has received useful hierarchical structure. From auditing is authorative structure it is opponent that the division in the hierarchical structure is performed dependent on the elements of every Office. The utilization authoritative structure determines the chain of importance composed dependent on the capacities. This organization has specific departments for performing different function like manufacturing. Marketing and sale purchase, human resource etc. This enables the managers and the employees to focus on their work alone. The organizational structure of GM is given below.