Organizational Structures Research Paper Example | Topics and Well Written Essays - 250 words

Organizational Structures - Research Paper Example The transnational structure on the other hand incorporates the aspects of the two structures mentioned above in order to ensure its success locally and internationally (Claver-Cortes, Pertusa-Ortega and Molina-Azorin, 2012). A Worldwide Product Structure is more decentralized and hence encourages diversification and autonomy of the products being processed by a company. This encourages growth and creativity without constant nagging and blockages from the headquarters. This is the opposite of what happens in a Worldwide Area Structure which centralizes its powers on the headquarters hence making it hard for the other branches of the product in other areas to develop autonomy or even creativity. A company that would choose the first structure is the one that is adamant on diversification and it previously had its domestic structures being based on division of products. A company choosing the worldwide area structure is the one which values centralization and has a diversification degree that is too low (Hempel, Zhang and Han, 2012). One type is the divisional structure where a company is grouped in divisions that depend on the products and the geographical area. The advantage of this type of structure is that each geographical area gets the products that it uses mostly and hence ensuring that the sales remain high and the company’s product has a competitive edge in that geographical area. The other type of complex organizational structure is the matrix structure. This is complex because of the different type of matrix that are present and which largely depend on both the employees and the products. It works well and succeeds in companies where employees work in teams to promote their products. In case there is no team work, this structure does not work well. Claver-Cortes, E., Pertusa-Ortega, E. and Molina-Azorin, J. (July, 2012). â€Å"Characteristics of