Organisational Structure and New Product Development in the Australian Grocery Market

Jerry Soldatos,Jurate Hardy

doi:10.15388/ekon.2004.17345

Abstract

The paper examines the role that organisational structure plays in the new product development process. Various new product development organisational structures are examined and their influence on new product development activities is explained. A review of the literature on organisational structure alternatives for new product development is presented. The research found that the most common organisational structure used for new product development was the product manager and marketing manager.

Highlights

The paper examines the role that organisational structure plays in the new product development process
It is necessary to create organisational structures that are compatible with the chosen product development process and supportive of all the various stages in the new product development process
One of the main reasons for not having efficient new product development structures is the lack of competent personnel, poor reporting sys~ems, ineffective communication and failure to have the support of top management

Summary

Introduction

It is necessary to create organisational structures that are compatible with the chosen product development process and supportive of all the various stages in the new product development process. In searching for ways to ensure effective co-ordination of the various stages of the organisation's new product development process, every organisation needs to find the organisational structure most appropriate for its situation. The structure of any organisation affects productivity and efficiency, and the morale and job satisfaction of the workforce. Organisational structures must be designed in a way that encourages participation and teamwork and rewards hard working members of the organisation. The allocation of responsibilities, the grouping of functions, decision-making, co-ordination, control and reward are fundamental requirements for any successful organisation. The negative effect of a poorly designed organisational structure can be reflected in Iow motivation levels and staff morale, late decisions, frequent conflicts, lack of coordination and a generally poor response to new opportunities

Background to the Study

Methodology

Findings