Functional versus Unit Organizations
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This blog post discusses the differences between functional organizations and unit organizations and their implications for decision-making and collaboration within companies. The author explains that functional organizations are structured around specific areas of expertise, such as engineering or marketing, while unit organizations are structured around product or business units. The post explores the advantages and disadvantages of each structure, highlighting how functional organizations can be hierarchical and may struggle with cross-functional collaboration, whereas unit organizations promote autonomy and foster better collaboration within teams. The author also discusses the challenges of transitioning between these two organizational structures. Overall, the article provides insights into the pros and cons of both functional and unit organizations, helping readers understand the trade-offs involved in structuring companies.