critical function structure

Fig. 31 Critical function structure. A typical example.

critical function structure

an ORGANIZATION structure in which one management function is considered so important that it is organized separately to some extent from the rest of the organization. For example, in retailing the overall structure is often the geographical variant of the PRODUCT-BASED STRUCTURE, with DECENTRALIZATION of AUTHORITY to an area or regional manager; however, standardized merchandising is considered so critical to the organization's success that this function is centralized on a functional basis (see Fig. 31).