Deployment of a Divisional Structure

Toshio Yamazaki
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Toshio Yamazaki: Ritsumeikan University

Chapter Chapter 9 in German Business Management, 2013, pp 175-209 from Springer

Abstract: Abstract This chapter discusses the deployment of a divisional structure in relation to changes in business strategies, management systems and practices, and managers’ traditional attitudes. It examines Japan’s and Germany’s methods of deploying a divisional structure, the progress of diversification in German corporations and its connection to organizational structure reforms, and the overall situations post the deployment of the divisional structure. It also considers case studies of representative corporations in major industries such as the chemical, electric, and iron and steel industries. This chapter reviews the deployment of a control system as an internal control organization and the role of US corporations and management consulting firms in management organization reforms. These discussions explain various characteristics of the deployment of German-style divisional structure such as (1) the impact level of delegation of authorities and responsibilities, (2) the traditions and roles of the board of directors and collegiate management, (3) the characteristics of the board majority system, (4) the significance of divisional executive ­management, and (5) the use of a compensation system linked to divisional results.

Keywords: Control systems; Decentralization; Diversification strategy; Divisional structure; Functional structure (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-4-431-54303-9_9

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DOI: 10.1007/978-4-431-54303-9_9

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