AMERICAN HEALTHWAYS PROCESS STRUCTURE CASE
The functional structure is perhaps the most widely used organizational structure where various functionsùmanufacturing, finance, etcùform the basis of the organization.
Functional structures encourage skill specialization, which may result in greater savings; in addition, resources are used full-time and careers can be mapped based on specialization.
Because routine tasks are emphasized, managers and others may focus on short-term time horizons.
Accountability can be lost due to interdepartmental dependencies.
In the divisional structure, the organization is structured around individual products or units. Thus General Electric's structure is based on aircraft engines as one division while its household appliances is another (276).
The divisional structure recognizes interdepartmental dependencies and allows for diversification of skills and training.
This structure also encourages delegation of authority and responsibility.
Resources may be used inefficiently in this structure, and career advancement is limited to moving outside of departments.
Largely an attempt to maximize the strengths and minimize the weaknesses of the functional and divisional structures.
Encourages flexible use of resources and forces strong communication between managers.
Requires strong management commitment and retraining of specialists when imposed on functional or divisional organizations.
May lower overall performance as power shifts in the new organization.
Radical and new, the process structure forms multidisciplinary teams around processes such as product development and customer support. All functions necessary to support a particular process are contained within the process organization.
The process structure focuses resources on customer satisfaction, and provides improved speed an
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