Sunday, June 30, 2013

Chapter 11 Organizational Structure

     Many major companies can be structured in three different ways; functional structure, multidivisional structure, or matrix structure.  Merck is organized as a multidivisional structure which is organized around product or geographic markets and are often self-sufficient in terms of functional expertise.

   Above shows a organizational chart of Merck.  Here is the link because the picture is very hard to see, Chart.  When you click on the link you can see everyone reports to the CEO and the people right below him are the presidents in their respective divisions such as animal health, emerging markets, etc..  I believe that this type of structure is the best for Merck over the others because the amount of employees it has.With close to 90,000 people working for the company and multiple divisions within the company this structure provides the best functionality.  All these different division really do not need to interact with each other because they are basically a small company within itself so their is no point in having your boss having nothing to do with your job description.  I know a person that works in Memphis for Merck, but his boss is in New Jersey; this is because he is in a division is located in New Jersey.  This is fine because of technology advances and  his job title can be done anywhere in the USA.

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