Case Study-KBR

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KBR is organized into six business units. This means there are numerous job roles in areas such as engineering, construction, operations, logistics and project management. The different roles can be organized within the structure of KBR to enable it to achieve its mission, which is to safely deliver any project, any time, in any environment for the benefit of our customers, shareholders, employees and the communities they serve. There are three means to organize a corporate and business unit structure for KBR: through functional structure, product division structure and matrix structure. Functional structure is a design that groups people together on the basis of their common expertise and experience or because they use the same…show more content…
Figure 1 Functional Structure A product division structure is characterized by the splitting of the manufacturing function into several different product lines or divisions; a centralized set of support functions then services the needs of all these product divisions. Figure 2 shows a product division structure for KBR. Figure 2 shows that in a product division structure, support functions such as engineering, construction, operation, logistics and project management are centralized at the top of the organization. Each product division uses the services of the central support functions and does not have its own support functions. Creating separate support functions for each product division would be expensive, and the cost could be justified only if the needs of the different divisions were so diverse and dissimilar that different functional specialists were required for each type of product. Each support function is divided into product-oriented teams of functional specialists who focus on the needs of one particular product division. Figure 2 shows the grouping of the five functions into six teams, each of which focuses on a separate product division. The six business units for KBR are as follows: Upstream offers engineering, construction, purchasing and related services for energy projects; Downstream serves business

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