ITEE ITEE-1 | Page 25

In principle, each business division conducts its own accounting, and is responsible for operating business and generating profits independently. Management X business division Y business division Z business division Production Sales Accounting Production Sales Accounting Production Sales Accounting ●Matrix organization A “matrix organization” is an organization form often employed by major enterprises and global corporations, and is structured along multiple chains of command such as function and region or function and product. Since this organization takes the form of multiple managers overseeing the persons that do the work, there is potential for confusion in the chain of command. At the same time, departmental boundaries are eliminated due to the sharing of work. Development department Planning department Research department Marketing department Project X Project Y Project Z ●Company system organization A “company system organization” refers to a structure that separates business divisions, and administrates the departments as independent companies. This increases the autonomy of the organization and enhances its ability to adapt to its environment. The organizational structure is similar to the divisional system organization, but under the company system organization, there is greater freedom and discretion to make human resources decisions. Board of directors Company X Sales 19 Plant Company Y Sales Plant Company Z Sales Plant