Traditional forms of organisation, Project Management

Traditional forms of organisation

Traditional forms of organisations were classified into five types based on the following differentiations.

  • Functional differentiation: A functional form of organisation is divided into functional subunits such as finance, marketing, production, human resource, research and development. The subunits are integrated by rules, procedures and coordinated plans. If a problem involves several functional units, the managers of all the affected subunits coordinate to resolve the issue.
  • Geographic differentiation: In this type organisations are subdivided according to location or region. This is done to cater to the needs of local customers, markets and so on. Functional differentiation is often retained within each geographic subunit. These sub units operate independently; integration between them is achieved through standardised accounting and reporting procedures.
  • Product differentiation: Organisations that produce various goods and services use product-based differentiation for example Virgin group is split into major sub-divisions , each division designs, manufactures and markets its own product line . Every subdivision has functional, geographic, or other forms of break down.
  • Customer differentiation: Organisations may also differentiate by customer type. For example, companies with large military sales often establish a separate division because federal requirements proposals, contracting and product specifications differ substantially from those for commercial customers. The level of integration between customer divisions depends on the degree of interdependency between their product lines.
  • Process differentiation: In this form, the bases for differentiation are some logical process or sequence of steps. Since they are sequentially related and problem in one area has an impact on the other, a higher level of integration is required among process-differentiated subunits.
Posted Date: 9/28/2012 5:53:14 AM | Location : United States







Related Discussions:- Traditional forms of organisation, Assignment Help, Ask Question on Traditional forms of organisation, Get Answer, Expert's Help, Traditional forms of organisation Discussions

Write discussion on Traditional forms of organisation
Your posts are moderated
Related Questions
1. Which product /service you propose to work on this quarter? From which company? Which product category does it belong to? Describe the product/service you will market briefly.

What work goes on previous to project start-up? Before project start-up, work is required to establish the things and scope of the project. This is essential to establish the d

IMPLEMENTING TQM TECHNIQUES IN LIBRARY AND INFORMATION CENTRE MANAGEMENT: Total Quality Management (TQM) as a management tool needs to radically rethink the way in which a lib

Question : (a) What are the distinguishing characteristics of a project? (b) What are the four types of consequences of risk? (c) Explain what you understand by the term


Question 1: Discuss the major elements required in a project control system and explain how a control system can be developed. Question 2: (a) Explain the role and natu

FLF is a courier company based in Z Country which presents direct document and parcel express delivery services for commercial customers. It prides itself not only on its reliabili

Solve the following CPM/PERT Network Analysis problem: Given the following network and activity time estimates, determine (ES, LS, EF, LF) earliest and latest activity times, slac

M a n a ging Project Quality as per PMI Project Management Institute (PMI) is a global organisation for the project management profession; it is engaged in setting professi

What are included in the privatisation of public sector undertakings? Privatisation of public sector undertakings: It is consisting of witnessed the trend toward opening