Jerald is CEO of a pharmaceutical company that operates globally. The

QUESTION

Jerald is CEO of a pharmaceutical company that operates globally. The company has a European president, a North American president, an Asian president, and a South American president.

Reporting to each president are the executive vice presidents of research and development, manufacturing, sales and marketing, and finance. Reporting to each executive vice president are the VPs of antihypertensives, antidepressants, and antibiotics. What kind of organizational structure is represented by Jerald’s company?
A) functional structure
B) divisional structure by geography
C) divisional structure by product
D) matrix structure
E) hybrid structure

ANSWER

Answer: E
Explanation: E) A hybrid structure is one in which an organization uses functional and divisional structures in different parts of the same organization.