Which type of organization structure is often used by companies that produce standard products?
Why? The functional organization structure is often used by companies that produce standard products because the focus is on the technical excellence and cost competitiveness of the companys products, as well as the importance of each functional components contribution of expertise to the companys products. 5. Discuss some of the problems that might be encountered when a functional-type organization develops new products. Because the team members view their contribution to the project (developing a new product) in terms of their technical expertise, their allegiance remains to their functional managers. If there is conflict among the team members, it usually works its way through the organization hierarchy to be resolved, slowing down the project effort. In addition, decisions might reflect the interests of the project managers own functional component rather than the best interests of the overall project. 6. Why is a project-type organization considered to be like a mini-company? It i