This report stresses that Rondell Corporation uses a functional structure, a design that entails grouping of people because they possess similar knowledge, skills or use the same resources. The employees in the Rondell are sourced mainly from one particular field, that of engineering, and they are then grouped in specialized departments because they use the same skills and resources. In the case of Rondell, for example, Doc Reeves was preferred by Dave Schwab to move from Frank Forbus department to work in his. This shows that Reeves possesses skills that can enable to work in another department. Reeves are generally and engineer.
This paper makes a conclusion that due to increased competition within companies, this structure is the most suitable as it tends to reduce the time required to bringing a new product to the market, as the process of product development is sped up. This structure involves centralization of the support functions and adoption of multidivisional structure whereby each department will have its own support functions. Specialists from the support functions are put together into product development groups that concentrate in the needs of a specific kind of product. The result is that each group becomes an independent division led by a product team manager, whose role is to oversee the operational activities related to the development and production of the product. The product groups specialize on the requirements of the product and they put their effort in it to ensure customer satisfaction.