facebook-organizational-structure

What Is Facebook’s Organizational Structure? Facebook Organizational Structure In A Nutshell

Facebook is characterized by a multi-faceted matrix organizational structure. The company utilizes a flat organizational structure in combination with corporate function-based teams and product-based or geographic divisions. The flat organization structure is organized around the leadership of Mark Zuckerberg, and the key executives around him. On the other hand, the function-based teams are based on the main corporate functions (like HR, product management, investor relations, and so on).

Understanding Facebook’s organizational structure

Facebook’s multi-faceted matrix organizational structure is well suited to the needs of the company and its diverse range of products and services. More specifically, the matrix structure allows tech companies like Facebook to innovative, be creative, and expand at the same time. While the company is now known as Meta, it’s important to note that the organizational structure remains unaltered with the exception of financial reporting.

In terms of leadership, Facebook has a predominant flat organizational structure where there are fewer leaders compared to subordinates who tend to possess more autonomy in their roles. Note that Facebook is not a company where individuals dream of working in a corner office. Those in positions of leadership work on the same desks as team members and Mark Zuckerberg occupies an accessible and visible office with glass walls. The CEO is also noted for hosting Q+A sessions every Friday where even interns can ask him probing questions.

In the next section, we’ll take a look at the other aspects of Facebook’s organizational structure.

Function-based teams

Facebook arranges corporate teams according to their business functions and the particular needs of the company as an online social media business. An executive or senior manager leads each team and, because of the matrix structure, there may be some overlap between teams and the product-based and geographic divisions.

Nevertheless, the primary corporate function-based teams include:

  • Human Resources.
  • Product Management.
  • Investor Relations.
  • Global Public Policy.
  • Business & Marketing.
  • Legal.
  • Marketing.
  • Security.
  • Privacy.
  • Accounting.
  • Technology.
  • Information.
  • Operations.
  • Finance.
  • Chief Executive.

Geographic divisions

Geographic divisions help Facebook make sense of the various social network and online advertising dynamics that differ from region to region. These dynamics may be influenced by culture, consumer behavior, or attitudes toward social media itself. 

Facebook has four, broad geographic divisions:

  1. North America.
  2. Latin America. 
  3. Europe, Middle East & Africa.
  4. Asia & South Pacific.

Each region is run by a management team that reports to corporate operations and executives.

Product divisions

Product divisions may become increasingly important for Facebook in the future as it shifts focus away from its core social networking service to other technologies such as the metaverse and artificial intelligence.

Currently, there are three product divisions:

  1. Family of Apps – this includes Instagram, Facebook Messenger, and WhatsApp, for example.
  2. New Platforms and Infrastructure – such as artificial intelligence, blockchain, virtual reality, and augmented reality.
  3. Central Product Services – a division that encompasses any feature that operates across multiple products or apps, such as those related to security and advertisements.

Key takeaways:

  • Facebook is characterized by a matrix organizational structure. The company utilizes a flat organizational structure in combination with corporate function-based teams and product-based or geographic divisions.
  • Facebook arranges corporate teams according to their business functions and the particular needs of the company as an online social media business. The matrix structure of Facebook means there may be some overlap between corporate teams and its product-based and geographic divisions.
  • Facebook’s geographic divisions help it account for how social media and advertising is perceived across different cultures and regions. Product-based divisions may change in the future as the company shifts its focus toward advanced technologies.

Read Next: Organizational Structure.

Read Also: Facebook [Meta] Business Model, What are Facebook subsidiaries?, The Metaverse Supply Chain, Who Owns Instagram?, Who Owns Facebook?, Facebook SWOT Analysis.

Organizational Structure Case Studies

Airbnb Organizational Structure

airbnb-organizational-structure
Airbnb follows a holacracy model, or a sort of flat organizational structure, where teams are organized for projects, to move quickly and iterate fast, thus keeping a lean and flexible approach. Airbnb also moved to a hybrid model where employees can work from anywhere and meet on a quarterly basis to plan ahead, and connect to each other.

eBay Organizational Structure

ebay-organizational-structure
eBay was until recently a multi-divisional (M-form) organization with semi-autonomous units grouped according to the services they provided. Today, eBay has a single division called Marketplace, which includes eBay and its international iterations.

IBM Organizational Structure

ibm-organizational-structure
IBM has an organizational structure characterized by product-based divisions, enabling its strategy to develop innovative and competitive products in multiple markets. IBM is also characterized by function-based segments that support product development and innovation for each product-based division, which include Global Markets, Integrated Supply Chain, Research, Development, and Intellectual Property.

Sony Organizational Structure

sony-organizational-structure
Sony has a matrix organizational structure primarily based on function-based groups and product/business divisions. The structure also incorporates geographical divisions. In 2021, Sony announced the overhauling of its organizational structure, changing its name from Sony Corporation to Sony Group Corporation to better identify itself as the headquarters of the Sony group of companies skewing the company toward product divisions.

Facebook Organizational Structure

facebook-organizational-structure
Facebook is characterized by a multi-faceted matrix organizational structure. The company utilizes a flat organizational structure in combination with corporate function-based teams and product-based or geographic divisions. The flat organization structure is organized around the leadership of Mark Zuckerberg, and the key executives around him. On the other hand, the function-based teams based on the main corporate functions (like HR, product management, investor relations, and so on).

Google Organizational Structure

google-organizational-structure
Google (Alphabet) has a cross-functional (team-based) organizational structure known as a matrix structure with some degree of flatness. Over the years, as the company scaled and it became a tech giant, its organizational structure is morphing more into a centralized organization.

Tesla Organizational Structure

tesla-organizational-structure
Tesla is characterized by a functional organizational structure with aspects of a hierarchical structure. Tesla does employ functional centers that cover all business activities, including finance, sales, marketing, technology, engineering, design, and the offices of the CEO and chairperson. Tesla’s headquarters in Austin, Texas, decide the strategic direction of the company, with international operations given little autonomy.

McDonald’s Organizational Structure

mcdonald-organizational-structure
McDonald’s has a divisional organizational structure where each division – based on geographical location – is assigned operational responsibilities and strategic objectives. The main geographical divisions are the US, internationally operated markets, and international developmental licensed markets. And on the other hand, the hierarchical leadership structure is organized around regional and functional divisions.

Walmart Organizational Structure

walmart-organizational-structure
Walmart has a hybrid hierarchical-functional organizational structure, otherwise referred to as a matrix structure that combines multiple approaches. On the one hand, Walmart follows a hierarchical structure, where the current CEO Doug McMillon is the only employee without a direct superior, and directives are sent from top-level management. On the other hand, the function-based structure of Walmart is used to categorize employees according to their particular skills and experience.

Microsoft Organizational Structure

microsoft-organizational-structure
Microsoft has a product-type divisional organizational structure based on functions and engineering groups. As the company scaled over time it also became more hierarchical, however still keeping its hybrid approach between functions, engineering groups, and management.

Read Next: Organizational Structure

Read Also: Business Model

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