Organizational Choice: Product Vs. Function

Business communication Organizational Choice: Product vs. Function Corporations, especially manufacturers, long have wrestled with the problem of how to structure their organizations to enable employees, particularly the specialists, to do their jobs with maximum efficiency and productivity. One perplexing issue has been whether to organize around functions or products. Here, two behavioral scientists look at the question in light of recent studies. […] by

• Arthur H. Walker
and
• Jay W. Lorsch

by

• Arthur H. Walker
and
• Jay W. Lorsch

From the Magazine (November 1968)

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Of all the issues facing a manager as he thinks about the form of his organization, one of the thorniest is the question of whether to group activities primarily by product or by function. Should all specialists in a given function be grouped under a common boss, regardless of differences in products they are involved in, or should the various functional specialists working on a single product be grouped together under the same superior?

A version of this article appeared in the November 1968 issue of Harvard Business Review. New! HBR Learning Writing Skills Course Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Writing Skills. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies. Capture your audience's attention with smarter emails, Slacks, memos, and reports. Start Course Learn More & See All Courses Read more on Business communication or related topic Organizational restructuring

• AW Mr. Walker is Associate Professor of Management at Northeastern University, where he teaches courses in human relations and organizational behavior to undergraduates and graduate students. Before turning to academic life, he spent 15 years in industry.
• Jay W. Lorsch is the Louis E. Kirstein Professor of Human Relations at Harvard Business School.

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New! HBR Learning Writing Skills Course Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Writing Skills. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies. Capture your audience's attention with smarter emails, Slacks, memos, and reports. Start Course Learn More & See All Courses Read more on Business communication or related topic Organizational restructuring

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