Abstract
Subsidiaries typically start out as a company division. As the company expands its product lines, the regions it operates in, or the customers it serves, the company is likely to combine the related research and development, procurement, production, and sales departments into a relatively discrete organizational structure. As such, the head of the division is often of equal importance as the company president. In particular, when the product has a competitive advantage, the head of the division has more authority in the company’s future operational planning. Thus, when a company has a multidivisional organizational structure, the heads of those divisions typically have considerable responsibilities. In this study, literature data were combined with a fuzzy Delphi expert questionnaire survey to determine the constructs and criteria for assessing candidates for division manager. Subsequently, the fuzzy decision-making trial and evaluation laboratory (DEMATEL) and the fuzzy DEMATEL-based analytic network process were used to identify the causal relationships between criteria and their weights, and the fuzzy technique for the order of preference by similarity to ideal solution was used to rank the solutions to approximate the company’s optimal candidate for division manager and provide the ideal decision-making solutions, which may offer companies with the reference of selecting the senior executives.
Highlights
A multidivisional organizational structure is generally formed to meet the needs of a company expanding its scale and diversifying its businesses
Yin [2] argued that the Formosa Plastics Group treats each division as a profit center in charge of its own profits and losses; in other words, when each division is considered a business unit, under a divisional structure, market opportunities are combined with the internal structure of the company to form a model in which each division has its own separate accounting and independent operations
Tsai et al [39] argued a technique for the order preference by similarity to the ideal solution to assist evaluating candidates, and a prototype of the research framework was based on the literature on competence, both in Taiwan and internationally
Summary
A multidivisional organizational structure is generally formed to meet the needs of a company expanding its scale and diversifying its businesses. This type of organizational structure involves centralized control and decentralized management: a decentralized operational organization under coordinated control. Yin [2] argued that the Formosa Plastics Group treats each division as a profit center in charge of its own profits and losses; in other words, when each division is considered a business unit, under a divisional structure, market opportunities are combined with the internal structure of the company to form a model in which each division has its own separate accounting and independent operations
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