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The product, called Smarter, dramatically reduced weed growth in potted lands and simultaneously provided burning(prenominal) nutrients all with no chemicals. Smarter raw materials and manufacturing expertise were available in mainland China and India. As the company grew, the managers and board members talked frequently about plaque complex body part. 2 schools of thought emerged. One group wanted to import raw materials into the U. S. For manufacturing by WAR and thereby have direct look everywhere manufacturing, marketing, and sales. These functions would be departments within WAR.The second group wanted to import already make ND packaged products from overseas, outsource marketing to an agency, and hire a horticulture distribution company to handle sales. The second group pushed the concept that no unity within the company would ever touch the product. Nor would there be running(a) departments for manufacturing, marketing, and sales. That discussion of expression with in WAR would not have occurred 30 years ago when Robert Duncan published his seminal article, What is the Right Organization expression? in Organization Dynamics in 1979.At that time, organizations were thought to be solidification, and building defined the porting relationships among internal functional departments. Dunces article provided important insights about the conditions under which diverse internal arrangements would achieve a companys mission. His insights argon still reference in management textbooks today. The purpose of this article is to present key developments in organization organise and design that have occurred since Dunces article and line when each can be used for greatest effect.We will briefly check out the important structural designs from 30 years ago and then describe key developments since that time. The concepts are organized into three eras, which reflect substantive changes in management thinking from vertical organization to horizontal organiz ing to open boundaries via outsourcing and partnering.The early era of organizational design probably took hold in the mid-asses, and was possessive until the late asses. In Era 1, the ideal organization was self-contained.It had clear boundaries amid it and suppliers, customers or competitors. Inputs arrived at the organizations gate, and after a shift key process, left as a completed product or service. Almost everything that was required during the transformation process was supplied internally. Design philosophies from this era emphasized the need to adapt to different environmental and internal contingencies and the ability to control the different parts of the organization 329 through reporting relationships in a vertical chain of overlook.The structure of self-contained organizations can be thought of as (1) the grouping of the great unwashed into functions or departments (2) the reporting relationships among people and departments and (3) the systems to ensure coordinat ion and integration of activities tooth horizontally and vertically. The structures of this era, including functional, division, and hyaloplasm designs, rely largely on the vertical hierarchy and chain of command to define departmental groupings and reporting relationships.Functional In a functional structure, activities are grouped together by common function from the bottom to the outstrip of the organization. Each functional activity accounting, engineering, human resources, manufacturing, etc. is grouped into a specific department. Most small companies use this structure, as do numerous large government organizations ND divisions of large companies. Divisional The divisional structure occurs when departments are grouped together based on organizational outputs. The divisional structure is sometimes called a product structure or sugar center.Most large companies have separate divisions that use different technologies or hang different customers. People within each division have more(prenominal) product focus, accountability, and flexibility than would be the case if they were part of a capacious functional structure. For example, United Technologies Corporation (UTC), which is among the 50 largest U. S. Industrial rims, has product divisions for air-conditioning and passion (Carrier), elevators and escalators (Otis), aircraft engines (Pratt & Whitney), helicopters (Scissors), and aerospace (Hamilton Suntanned), among others.Each division acts like a stand-alone company, doing its own product development, marketing, and finance. 330 level Overlays and Matrix Few organizations can be successful today with a pure functional structure, because the resulting functional or divisional silos inhibit the list of coordination needed in a changing competitive environment. Organizations break fine-tune silos by using a variety of horizontal linkage mechanisms to mend communication among departments and divisions. These coordination relationships are often drawn on organization charts as dotted lines.Many organizations use full-time product managers, project managers, or label managers, to coordinate the work of several departments. The brand manager for Planters Peanuts, for example, serves as an planimeter by coordinating the sales, advertising, and distribution for that product. General Motors Corp.. Has brand managers who are integrators credi devilrthy for marketing and ales strategies for each of Gems new models. Organizations that need even stronger horizontal coordination whitethorn evolve to a matrix structure. The matrix combines a vertical structure with an equally strong horizontal overlay.While the vertical structure provides traditional control within functional departments, the horizontal overlay provides coordination across departments to achieve good goals. This structure has lines of formal authority along two dimensions, such as functional and product or product and region. Some employees report to two bosses si multaneously. For example, after a regional racketing promotion went $10 million over budget, Nikkei Inc. Managers engineered a matrix structure that assigned dual responsibility by product and region to manage the introduction of new products each year.