IntroductionIn 1854, Daniel McCallum, 39, became general superintendent of the Erie Railroad, at the time one of the largest railroad companies in the world. A few months after taking over, McCallum noticed inefficiencies in the company's operating costs (Makamson, 2000). In this capacity, McCallum designed and expounded the first principles of organizational structure. The goal of his organizational design was to enable a large company to operate as efficiently as a small one. As (Makamson, 2000) puts it: “His organizational chart, which was widely adopted, exposed the fundamental structural difference between the ubiquitous “functional” organization and the emerging corporate or multidivisional structure. » Just like Daniel McCallum and almost 150 years later in 2003, ING Asia Pacific's new CEO for Insurance, Jacques Kemp, was looking at the regional operating structure, performance and growth strategy and noticed some inefficiencies management (Schotter, 2006). Kemp understood the enormous opportunities for economic growth within ING's Asian regional markets and the need to plan for the future competition his company would face. As such, he highlighted that their regional organization's strategy was not aligned with the structure of the organization and the importance of functional leadership following the same roadmap for strategy and execution (RSM , 2009). Kemp understood that if a specific and well-planned organizational structure is in place, an organization can operate more effectively and efficiently, thereby achieving greater profits. There is a step-by-step methodology that is considered when designing a company's organizational structure to ensure competitive advantage (Robbins & Coulter,...... middle of paper...... and corporate mission that all employees can Only then will staff understand the lines of authority and communicate effectively within the organization References Makamson, E. (2000) Retrieved from http://www. .mgmtguru.com/mgt301/301_Lecture1Page7. htmRotterdam School of Management (RSM) (March 27, 2009). www.rsm.nl/home/news/detail?Robbins. TP and Coulter, M. (2012). Pacific [Case study].: IveyPublishing.123HelpMe.com (2011). ING insurance Asia/Pacific Retrieved December 3, 2011 from https://www.123helpme.com/ing-assurance-asiapacific-case-view.asp? id.=165609