Squatter structure

The squad structure in the organization is a modified linear-staff structure, with decentralized segments with a high degree of competence. It is characterized by grouping and integration of organizational cells into large, independent (organizational) units (referred to as squads, sectors, segments, complexes or plants). They are responsible for the product or assortment group, or for the customer group (separated on the basis of geographical criteria or type of activity). Organizational units are extracted on the basis of different criteria, most commonly: geographic markets, product groups, or groups of customers.

Squat structures are characteristic of transnational corporations, which in their activities have to take into account the specificities of national markets, eg different legal, cultural and economic conditions. At that time, it would be difficult to manage the whole or even part of the branch office from the headquarters. Transfer of competencies involves the creation of profit centers in a decentralized structure of a multinational enterprise, largely independent.

The whole of such a divisional system is managed by the central unit, which usually retains functions such as: investment economy, management economy, finance management, research and development (R & D), marketing or organization of export and import. Centered functions provide coordinated and uniform operation of the entire system. Individual segments in the squad structure may have a linear or other structure - suitable for specific operating conditions.

Separation in companies using the type of squat structure of many complex, aligned in the organizational structure of squadrons led by independent directors, becomes in practice the expression of the decentralization of powers and responsibility and concentration in the hands of the most competent persons of all managerial functions. As a result, the company's top management is relieved of responsibility for the production process in the individual squadrons, and thus it can focus its efforts on the strategic concerns of the entire company by developing strategies.

The combination of the matrix concept (two-dimensional - functions and projects) with the divisional structure makes it possible to distinguish the third dimension, which is the region of the organization. This requires the creation of an organizational hybrid structure. This means that for the co-ordination of the company's activity in spatial terms, a third type of managers is appointed, the so-called. regional managers. Bibliography

wiki