ABSTRACT
Historically, the majority of organizations have been structured according to one of three main principles (i.e., a simple, functional, or divisional form). The simple, functional, and divisional model can be analyzed by means of design structure matrices (i.e., axiomatic design principles). Typically, firms start with a simple structure and progress to a functional and then a divisional structure. Increasing size is usually the trigger for changing from a simple to a functional structure. Increasing product or geographical diversity is usually the trigger for adopting the divisional structure. Important trends include consolidation of support activities, cooperative divisional structures, and disaggregation of large firms.
