Describe the characteristics of a product team structure

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A product team structure is a cross between the product division structure, in which the support functions are centralized, and the multidivisional structure, in which each division has its own support functions.

In a product team structure, specialists from the support functions are combined into product development teams that specialize in the needs of a particular kind of product. The product teams focus on the needs of one product (or client) or a few related products, and they owe their allegiance not to their functions but to the product team they join.

A product team structure is more decentralized than a functional structure or a product division structure, and specialists in the various product teams are permitted to make on-the-spot decisions, particularly important in service organizations.

Business

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