Product-Line Management in Professional Organizations: an Empirical Test of Competing Theoretical Perspectives

Abstract

Guided by two competing theoretical perspectives, we investigated effects of structure on performance and human resource outcomes of general hospitals. Neither a product-line nor a functional structure was associated with the performance outcomes of service quality and innovation. However, the product-line structure was negatively associated with the human resource outcomes, professional development, and job satisfaction. In line with the professional autonomy perspective, our results raise questions about the appropriateness of a product-line structure for professional organizations.