Functional vs Business Unit Orgainzations LO13379

Brian R Wheeler/ONTC (Brian_R_Wheeler/
23 Apr 97 8:51:02

Greetings everyone,

Are there any references or resources that would help explain how to
assess the advantages and disadvantages of a functional organization
versus an organization that is set up into business units with no formal
functional affiliation? We have a relatively small organization (<150
people) and we're in a functional structure now (i.e. Operations,
Engineering, Marketing, etc.). Because of a new regulatory environment
there is a lot of interest in restructuring along competitive and
regulated business units and reducing the departmentalization.

What are the risks to this kind of move and the potential benefits from
your experience in the field? How could these issues be assessed
objectively by senior management? What is the most effective way of
facilitating a restructuring so that the long-term issues are adequately


Brian Wheeler
Director Engineering


Brian R Wheeler/ONTC <Brian_R_Wheeler/>

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