367). For example the shipping department could not do its job if the manufacturing department did not supply them with the product. This makes the job of the CEO or president of the entity very important because he or she is responsible for overseeing all of the departments and making sure they are functioning smoothly. The functional style of organization leads to a very centralized authority. A benefit of this design is that it allows experts in their field to be assigned to department which allows greater efficiency and progress in each of the departments. This design of organization is very well suited for a company that makes a single product (http://www.family-business-experts.com/organization-structures.html). Some of the disadvantages of this design are that it can often cause inter-company feuds between departments and also it causes managers to tend to be less diversified after reaching upper management because they climbed the ranks all in one department. Also, decisions involving multiple departments can be arduous and time consuming because of the multiple layers of management that have to be gone through. Another problem that is often faced by this design is that the CEO is sometimes tied up with operational decisions and cannot make strategic or competitive decisions (http://www.family-business-experts.com/organization-structures.html). Most experts agree that the functional design of organization is best used by smaller companies that tend to specialize in one product because after a certain point it becomes increasingly difficult for the CEO of the entity to coordinate and oversee the entire operation. Some well known companies that use this method of organization include the WD- 40 Company and the McIllenny Company, which makes Tabasco hot sauce (Griffin 367).
             The divisional design of organization is in use when an entity has divisions of the same or related products that are largely ran by managers in each...