When Should A Firm Decentralize?: Corporate Features Can Determine Your Organization's Design

Modern organizations typically organize according to four commonly observed structures: flat, divisional hierarchy, functional hierarchy, and matrix. To illustrate these structures, consider a simple company that produces and sells two different versions of a product, like chocolate and vanilla ice cream, 220 volt and 110 volt hairdryers, or English and Spanish versions of a magazine. Though essentially the same, each version of the product must incorporate unique design features, and each must be pitched differently to its own unique market.