Organizational Structures and Corporate Cultures
Organizational Designs and Structures
Geographic Structure
A
geographic structure is another option aimed at moving from a
mechanistic to more organic design to serve customers faster and with
relevant products and services; as such, this structure is organized by
locations of customers that a company serves. This structure evolved as
companies became more national, international, and global. Geographic
structures resemble and are extensions of the divisional structure.
Organizing
geographically enables each geographic organizational unit (like a
division) the ability to understand, research, and design products
and/or services with the knowledge of customer needs, tastes, and
cultural differences. The advantages and disadvantages of the geographic
structure are similar to those of the divisional structure.
Headquarters must ensure effective coordination and control over each
somewhat autonomous geographically self-contained structure.
The
main downside of a geographical organizational structure is that it can
be easy for decision-making to become decentralized, as geographic
divisions (which can be hundreds if not thousands of miles away from
corporate headquarters) often have a great deal of autonomy.
IBM China
IBM
has chosen a geographic structure which is aimed at moving from a
mechanistic to more organic design to serve customers faster and with
relevant products and services; as such, this structure is organized by
locations of customers that a company serves. This structure evolved as
companies became more national, international, and global. Geographic
structures resemble and are extensions of the divisional structure.
