Which type of changes are involved when a company reorganizes from a functional to a product structure?

When a company reorganizes from a functional to a product structure, the changes primarily represent structural changes. This type of reorganization involves altering the way the company is organized and how it functions at a foundational level. A functional structure typically groups employees based on specialized roles, such as marketing, finance, and production, whereas a product structure organizes teams around specific products or product lines.

This shift aims to create a more focused approach to product development and management by aligning resources and efforts directly with product-related outcomes. It often leads to more efficient decision-making and can enhance communication across different functions that are tied to a product, thereby improving responsiveness to market demands.

Strategic changes refer to shifts in the overall direction or goals of the organization, while technological changes pertain to advancements or modifications in technology used by the organization. Personnel changes would involve alterations in staffing or human resources. Though these may occur during such a reorganization, the primary focus of the change itself is structural, as it directly affects how the organization is designed to operate and manage its resources.