ABSTRACT
The organizational structure of a company is the way that company groups its jobs and defines the line of authority to integrate the jobs. Organizational structure has three dimensions, as illustrated in Figure 10.1. From the similarity of goals, the sub-units are grouped under products. The diversified company takes this grouping as the first stage; it uses the product division structure. From the similarity of required knowledge, the jobs are grouped under strategic planning, development, production and marketing. This is a functional grouping. The specialized company uses functional organization as its first stage of grouping.
