For the most part, each division will be able to operate independently. That is, each will have its own engineering, manufacturing, accounting departments, etc. In some cases, however, it will be necessary for a division to utilize the services of other divisions or departments. This is necessary because the complete servicing with individual divisional staffs would result in unjustifiable additional staffing and facilities.
The old companywide laboratory was one such service department. Functional, it continued to support all of the major divisions. Administratively, however, the manager of the laboratory reported to the manager of manufacturing in the military jet engine division.