The organizational structure for Tyco International can be described as a functional structure that is organized along functional lines, where there is a chairman and CEO (Edward Breen), and directly reporting to him are the most senior people of all the functions (finance, general counseling, strategy and investment, accounting, flow control, taxation, treasurer, safety, human resources, internal communications and procurement). All areas of the business are therefore represented at a senior level. Employees are grouped according to their specialization and skill and are managed by someone who has knowledge of their specialization or skill.
As compared to the organizational structure of Intel Corporation which is an example of a matrix structure, Tyco also staffed their departments with people from the basic functional groups. However, in contrast to Intel, Tyco did not organize their company around product groups. Thus, individual workers were members of only functional groups and not product groups as well like Intel. The latter organization, being in an industry characterized by a sequence of new products, chose the matrix structure because it is important for the firm members to communicate together and work closely.
Managers of Tyco focus on managing their particular function across products, while product managers of Intel focus on managing particular products across functions.
Procter & Gamble (P&G) has a geographic deign for their organizational structure.
In comparison with Tyco, their structure also typically has functions beneath the geographic level. However, in contrast with P&G, Tyco does not organize their fir by regions. Tyco instead created functional divisions across the organization. The premise of P&G’s structure is organized around physical locations because they have a high cost of transport since they are a consumer goods company. This does not apply for Tyco, who manufactures security, medical and engineered products that can be sold at higher margins.
REFERENCES FOR POWERPOINT
- Brickley, J., Smith, C., Zimmerman, J. & Willett, J. (2002). Designing Organizations to Create Value: From Strategy to Structure. New York: McGraw-Hill.
- Campbell, D. & Craig, T. (2005). Organizations and the Business Environment. Burlington, Massachusetts: Butterworth-Heinemann.
- Marras, W. & Karwowski, W. (2006). The Occupational Ergonomics Handbook. Boca Raton, Florida: CRC Press.