chapter  2
24 Pages

The organizational context

Increasingly, the trend in organizational design today is towards smaller, more autonomous business units. Evidence for this trend takes several forms:

replacement of traditional hierarchies, with all decisions taken at the centre, by decentralization of decision-making

the incorporation of support services (like finance and personnel) into the activities of business units

the fragmentation of multiple product-lines into singleproduct activities, either for manufacture, marketing, or both.