BS 11 Organizational Structure & Design

Question 1

Explain how a simple structure is characterised.

Answer 1

1. Common in small businesses
2. Lack of clear division and management responsibility
3. Only efficient up to a certain amount of staff.

Question 2

How is a functional structure characterized?

Answer 2

1. Based on primary function: Marketing, production, finance and personnel.
2. For smaller companies with narrow product range.
3. Provides clear division of tasks and responsibility.
4. Disad: As the organization grows senior manager overwhelmed of departmental tasks.

Question 3

Explain Multi Divisonal Structure!

Answer 3

1. Multidivisional structure are subdivided in Business Units.
2. Maybe formed on based of products, services and geographical spread.
3. Advan: Each division focuses on challenges and opportunities in its operating area.
4. Disad: May result in complex structure, difficult to manage.

Question 4

What is a Holding Company in a nutshell?

Answer 4

1. Investment company which may have investment portfolios in a wide range of unconnected businesses.
2. Parent company is simply to decide wether to buy or sell the investment.
3. Advan: Spreading risk across its portfolio.
4. Disad: Dublications of efforts between business units.

Question 5

What is a matrix structure?

Answer 5

1. combination of structures taking the form of either product and geographical divisions or functional and divisional structures.
2. For Small and Large Firms
3. Advan: Improves division quality, replacement of bureaucracy
4. Disad: Decision speed is compromised, more time spent on conflict resolution.

Question 6

What is intermediate structure?

Answer 6

1. Structure during the time of transition.
2. For example between functional and divisional structure.
   3.

Question 7

What is multinational structure?

Answer 7

1. A home based parent company
2. With branches overseas
3. Local independency and responsiveness.

Question 8

What are the three key driver to determine centralization vs devolution?

Answer 8

1. Strategic planning
2. Financial control
3. Strategic control

Question 9

List the six organizational configurations.

Answer 9

1. Operation core (Members involved in producing goods and services)
2. Strategic apex (Higher level of management)
3. The middle line (Middle and lower level management)
4. Techno structure (technical input, not core)
5. Support staff (support , not part of the core)
6. Ideology (Culture belief)

Question 10

List the four possible influence area on organizational design.

Answer 10

1. Strategy
2. Process and technology
3. Organizational type
4. Environment