The One Behind It All Chapter 116

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The principle of functional specialization is the basic principle for establishing management departments. For areas of business activities whose main objectives are to improve efficiency and strengthen control, departments should generally be divided according to this principle.

The company's management resources, research resources, pilot resources, certification resources, production management resources, market resources, financial resources, human resources and information resources... are the company's public resources. Auditing is necessary to improve the efficiency of public resources. Organize corresponding departments according to the principle of functional specialization to form the main body of the company's organizational structure.

(Business Department)

Article 46 The principle of object specialization is the basic principle for establishing new business departments.

The division principle of business units can be one of the following two principles, namely product area principle and process principle. The business unit established according to the principle of product field is an expansion business unit, and the business unit established according to the process principle is a service business unit.

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