Ideal organizational structures are subjectively based on specific sets of organizational and external factors. Begins with a review of structural alternatives and identifies the need for a contingency‐based approach. Changes in corporate structure may be needed as a result of internal developments and environmental changes. A case study of the consumer goods multinational, Procter & Gamble, is used to illustrate the evolutionary nature of organizational structure. Difficulties in determining the ideal structure lead to a basis for a set of recommendations which can help leaders structure their own organization for success.
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