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Category: Business and Industry

Date Submitted: 06/15/2010 09:24 AM

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Companies need to organize, or create structures through which to implement plans and accomplish objectives. To organize, managers determine the work to be done, then group those activities logically, assign work to specific employees, and allocate the resources they need to accomplish the work. As a company grows, its structure increases in complexity. With increased size comes specialization and growing numbers of employees. To accommodate these factors in today’s modern globalization, organizations are implementing different global organizational structures. The differences in two global organization structures are discussed by comparing and contrasting two wind turbine companies with different organizational structures: Wind Speed and Windward.

Wind Speed is an international company that is headquartered in Dallas, Texas. The company is organized in a functional structure which groups positions into work units based on similar activities, skills, expertise and resources(“Five Approaches to Organizational Design,” 2010). In this case, there are four vice presidents in the organization and they are grouped separately to head and manage their different operations all over North and South America, Europe and Asia. Only two personnel are based outside the United States – two plant managers in Mexico and China (“WindSpeed,” n.d.). Conversely, Windward is a transnational company organized in a matrix structure which is a combination of functional and divisional structure. This structure combines functional specialization with the focus of divisional structure (“Five Approaches to Organizational Design,” 2010). In this case, human resources, operations and information technology and finance are linked together to work on specific projects for their plant managers in Mexico and China and all Vice Presidents are divided by geographical and system expertise. (“Windward,” n.d.).

Since Wind Speed operates in a functional structure, it emphasizes on...