Published by:
Harvard Business Publishing
Length: 9 pages
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Abstract
A discussion of a study of two similar manufacturing plants, one organized by product, the other by function, offers clues for managers concerned with how to structure their corporations to enable employees, particularly specialists, to do their jobs with maximum efficiency and productivity. Managers traditionally use technical and economic criteria that ignore the complex set of tradeoffs involved in deciding between a product or functional basis for organization. The recommended solution to the problem of which structure to adopt depends on the analysis of multiple tasks, differences between specialists, the objective of integration and the mechanisms and behavior required to resolve conflict and arrive at the desired states of differentiation and integration.
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Abstract
A discussion of a study of two similar manufacturing plants, one organized by product, the other by function, offers clues for managers concerned with how to structure their corporations to enable employees, particularly specialists, to do their jobs with maximum efficiency and productivity. Managers traditionally use technical and economic criteria that ignore the complex set of tradeoffs involved in deciding between a product or functional basis for organization. The recommended solution to the problem of which structure to adopt depends on the analysis of multiple tasks, differences between specialists, the objective of integration and the mechanisms and behavior required to resolve conflict and arrive at the desired states of differentiation and integration.