Amerigroup (NYSE: AGP) is a health insurance company headquartered in Virginia Beach, Virginia. It is the largest publicly-traded company focused exclusively on meeting the needs of those enrolled in publicly-funded healthcare programs such as Medicaid and Medicare. In 1994, Amerigroup was founded to respond to the growing need for private-sector partners in states managing healthcare programs for lower-income families and people with disabilities.


President
James Carlson
Director
Richard Shirk
2
Director
Jeffrey Child
2
Director
Thomas Capps
2
Director
Kay James
2
Director
Uwe Reinhardt
2
Director
William McBride
2
Director
Hala Moddelmog
4
Director
John Snow
3
Director
Joseph Prueher
2
Director
Emerson Fullwood
2
Compliance & Ethics
John Finley
CFO
James Truess
COO
Richard Zoretic
Associate Services
LWT
CIO
LR
Medical
MM
Legal & Secretary
NP
Government Relations
JL
Accounting
MR

Divisional Structure
The Divisional Structure is not so much based on the grouping of people according to their skill sets as it is concerned with placing groups of people with similar abilities where they are needed all across the organization. For instance, while under the Functional Structure you would expect to find accountants only in the Accounting Department, under the Divisional Structure you will find accountants in different divisions of the same company, in separate Accounting Departments which are dedicated to separate product lines.
Figure 8: The Divisional Organization Structure
Organizational Structure:
A Critical Factor for Organizational Effectiveness and Employee Satisfaction 12
Organizational Structure:
A Critical Factor for Organizational Effectiveness and Employee Satisfaction 13
As you can see in Figure 8, each product line has its own Functional Organization with Production, Sales, R&D and Accounting teams, permitting each product line to function independently of the other product lines. Yet each product line is a component of a larger organization.
A solid example of Divisional Structure can be seen in the Boeing Company. Boeing has three divisions within its organization: the Commercial Airline division; the Military Aircraft division; and a fledgling new division or product group called Private Aviation. Each of these divisions is a functional organization unto itself, each with its own R&D and Production and Sales and Accounting teams; yet, each is only a component of a much larger organization called Boeing Company.
Of course, organizational divisions can be and usually are much more than mere product lines. The divisions may be based on different consumer markets. Everyone knows that Black & Decker, for example, manufactures and sells construction equipment, but its divisions target different consumer markets. One division markets to the layman builder, another division markets to the private professional builder, and yet another division markets to large government contractors.
Organizational divisions may even be based on geographic markets — for instance, a global corporation may have a North American division, a European division, an Asian division, and so forth. In fact, an organization’s Divisional Structure may be based upon anything.
Advantages and Disadvantages of The Divisional Structure
The advantage of the Divisional Structure lies mainly in the coordination of functions within the separate divisions. Behind any single product group or market group or geographic group is one person who is in charge of all the functions within his division. This improves the ability of a company to respond to customer issues, because there is more accountability — everyone in a given division reports to a single individual at the top of the division, rather than to a mere supervisor of a department. This arrangement also helps to develop managerial skills and executive skills, because people working in a Divisional Structure are exposed to all of the other functions, unlike the siloing effect seen in a straight Functional Structure.
The disadvantage of the Divisional Structure lies in redundant effort and resources due to multiple departments performing essentially the same tasks across the organization, which spells inefficiency on many levels. Within the Divisional Structure there is also a reduction in specialization and occupational skills, not to mention a high probability of in-house competition between the various divisions of the company.11
Even so, the Divisional Structure is widely embraced by larger companies, and it’s not nearly as controversial as the next type of organizational structure we will examine — the Matrix Structure.
 
Last edited:

jamescord

MP Guru
Amerigroup (NYSE: AGP) is a health insurance company headquartered in Virginia Beach, Virginia. It is the largest publicly-traded company focused exclusively on meeting the needs of those enrolled in publicly-funded healthcare programs such as Medicaid and Medicare. In 1994, Amerigroup was founded to respond to the growing need for private-sector partners in states managing healthcare programs for lower-income families and people with disabilities.


President
James Carlson
Director
Richard Shirk
2
Director
Jeffrey Child
2
Director
Thomas Capps
2
Director
Kay James
2
Director
Uwe Reinhardt
2
Director
William McBride
2
Director
Hala Moddelmog
4
Director
John Snow
3
Director
Joseph Prueher
2
Director
Emerson Fullwood
2
Compliance & Ethics
John Finley
CFO
James Truess
COO
Richard Zoretic
Associate Services
LWT
CIO
LR
Medical
MM
Legal & Secretary
NP
Government Relations
JL
Accounting
MR

Divisional Structure
The Divisional Structure is not so much based on the grouping of people according to their skill sets as it is concerned with placing groups of people with similar abilities where they are needed all across the organization. For instance, while under the Functional Structure you would expect to find accountants only in the Accounting Department, under the Divisional Structure you will find accountants in different divisions of the same company, in separate Accounting Departments which are dedicated to separate product lines.
Figure 8: The Divisional Organization Structure
Organizational Structure:
A Critical Factor for Organizational Effectiveness and Employee Satisfaction 12
Organizational Structure:
A Critical Factor for Organizational Effectiveness and Employee Satisfaction 13
As you can see in Figure 8, each product line has its own Functional Organization with Production, Sales, R&D and Accounting teams, permitting each product line to function independently of the other product lines. Yet each product line is a component of a larger organization.
A solid example of Divisional Structure can be seen in the Boeing Company. Boeing has three divisions within its organization: the Commercial Airline division; the Military Aircraft division; and a fledgling new division or product group called Private Aviation. Each of these divisions is a functional organization unto itself, each with its own R&D and Production and Sales and Accounting teams; yet, each is only a component of a much larger organization called Boeing Company.
Of course, organizational divisions can be and usually are much more than mere product lines. The divisions may be based on different consumer markets. Everyone knows that Black & Decker, for example, manufactures and sells construction equipment, but its divisions target different consumer markets. One division markets to the layman builder, another division markets to the private professional builder, and yet another division markets to large government contractors.
Organizational divisions may even be based on geographic markets — for instance, a global corporation may have a North American division, a European division, an Asian division, and so forth. In fact, an organization’s Divisional Structure may be based upon anything.
Advantages and Disadvantages of The Divisional Structure
The advantage of the Divisional Structure lies mainly in the coordination of functions within the separate divisions. Behind any single product group or market group or geographic group is one person who is in charge of all the functions within his division. This improves the ability of a company to respond to customer issues, because there is more accountability — everyone in a given division reports to a single individual at the top of the division, rather than to a mere supervisor of a department. This arrangement also helps to develop managerial skills and executive skills, because people working in a Divisional Structure are exposed to all of the other functions, unlike the siloing effect seen in a straight Functional Structure.
The disadvantage of the Divisional Structure lies in redundant effort and resources due to multiple departments performing essentially the same tasks across the organization, which spells inefficiency on many levels. Within the Divisional Structure there is also a reduction in specialization and occupational skills, not to mention a high probability of in-house competition between the various divisions of the company.11
Even so, the Divisional Structure is widely embraced by larger companies, and it’s not nearly as controversial as the next type of organizational structure we will examine — the Matrix Structure.

hey netra,

Here i am sharing Organisational Chart of AMERIGROUP Corporation, so please download and check it.
 

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