ABSTRACT
This chapter proposes a thorough review of the potential organizational designs for pricing management. Five organizational elements associated with advanced pricing orientation and pricing maturity emerged: championing behaviors, organizational confidence, pricing capabilities, change capacity and center-led pricing management. The chapter suggests that a pricing organizational design evolves over time based on pricing maturity, external conditions and organizational structure. Management literature is rich in papers and studies illuminating the historical roots and drivers of the centralization debate and dates from the 1920s when large multinational corporations evaluated organizational design options. Decentralized pricing is the de facto organizational design for most companies. The chapter demonstrates that organizational design for pricing needs to be dynamic based on the internal situation of each firm and based on external market forces. It focuses on the constructs of organizational structure, centralization versus decentralization and the contemporary concept of center-led functional management.
