Practical sheet | REF: FIC1709 V1

Choose the right structure for your company and its activities

Author: Jean-Pierre PAYRE

Publication date: June 10, 2021 | Lire en français

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1. Find the right business structure for your activities

Classic functional structures imply the homogeneity of each function, headed by a manager, with general management ensuring coordination between functions. This applies well to a single product, for a small, uncomplicated company.

The division of labor is based on a single production process, or divisional production, known as per product, which enables companies with diversified production to divide labor according to the products manufactured. Each division is responsible for its own costs and results. Powers and responsibilities are decentralized.

These types of structures increase motivation, productivity and quality, but are unable to meet project needs when the customer requires a single point of contact to ensure his contract and satisfaction within a finite contractual timeframe.

Horizontal coordination of...

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