Product Line Structure

More and more companies are organizing themselves along product lines where companies have separate divisions according to the product that is being worked on. in this case the focus is always on the product and how it can be improved.

A product structure will divide an organization into divisions in charge for different products. This structure will be used by those companies which produce more than one product.

Tasks can also be grouped according to a specific product or service, thus placing all activities related to the product or the service under one manager. Each major product area in the corporation is under the authority of a senior manager who is specialist in, and is responsible for, everything related to the product line.

Product structure groups employees together based upon specific products produced by the company.

An example of this would be a company that produces two distinct products, "product I" and "product II". This company would have a separate division for each product.