worldwide functional structure

1. WORLDWIDE FUNCTIONAL STRUCTURE- Under this type of structure functional department or
divisionisresponsible foritsactivitiesaroundthe world.Forexample,the manufacturingdepartment
is responsible for worldwide manufacturing activities. Similarly finance, marketing, research, and
development and human resource management will carry on their activities accordingly throughout
the world.Thistype of organisationstructure is usedby MNCs usingnarrow or similarproductlines.
This results into U-form organisation (unity based organisation).
British Airways is essentially a single business firm and has companywide functional operations
relatingto marketingandoperations,publicaffairs,engineering,corporate finance,humanresource
and other basic functions of the organisation.
GEOGRAPHIC AREA STRUCTURE- When the world wide activities are organisedby dividing the globe
into different geographic area, is called geographic area structure. The Regional Manager being the
Vice-presidentof eacharea is responsible forall businessactivitieswithinthatgeographicarea. This
organisationstructure canrespondtothe marketconditionof aparticularareamuchmore effectively
than any other structure. The manufacturing process should be slight by different in two locales.
SimilarlyIndianenjoysoupswithlotsof spiceswhileinEnglandpeoplepreferblandsoups.Geographic
division can easily respond to these preferences in tastes easily.
There are different divisions covering different areas and there is possibility divisions covering
differentareasandthere ispossibilityof duplicationof functions.There isalsothe problemof lackof
communicationamongdivisions.Thistype of structure is not suitable forproducts undergoingrapid
technological changes.