BUISENESS MANAGEMENT
BUSINESS STRUCTURE
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Functional
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Matrix
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Geographic
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Product
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Detailed explanation-1: -Answer and Explanation: This is an example of departmentalization by: D) product. Tide, Pampers, Charmin, and Pringles are all products of Procter & Gamble. Therefore, having these departments shows departmentalization by product.
Detailed explanation-2: -The organizational structure of Procter & Gamble is predominantly product-type divisional. This means decision-making, strategy, and management are determined by product-based divisions headed by autonomous CEOs. Procter & Gamble incorporates six geographic divisions that help it manage its vast global operations.
Detailed explanation-3: -The four types of organizational structures are functional, multi-divisional, flat, and matrix structures. Others include circular, team-based, and network structures.
Detailed explanation-4: -At this point, it is important to understand why the P&G US organization structure in 1987 adopted the matrix. The purpose was to balance better the product and the functional influence in the management decision process as illustrated in Figure 2.
Detailed explanation-5: -What is a product-based structure? In a product-based structure (also known as a divisional structure), you assign employees into self-contained divisions according to: the particular line of products or services they produce. the customers they deal with. the geographical area they serve.