Chapter 10

Question 1

Organizational Structure

Answer 1

Refers to formalized patterns of interactions that link a firms tasks, technologies, and people

Question 2

Structure provides a means of balancing two conflicting forces

Answer 2

Need for the Dickson of tasks into meaningful groupings

Need to integrate the groupings for efficiency

Question 3

Simple Structure

Answer 3

An organizational form in which the owner-manager makes most of the decisions and controls activities, and the staff serve as an extension of the top executive.

Advantages:
Highly informal
Centralized decision making
Little specialization

Disadvantages:
Employees may not understand their responsibilities
May take advantage of lack of regulation
Limits the growth

Question 4

Functional Structure

Answer 4

An organizational form in which the major functions of the firm, such as production, marketing, R&D, and accounting are grouped internally.

Advantages:
Enhanced coordination and control
Centralized decision making
Enhanced organizational-level perspective
More efficient use of managerial and technical talent
Facilitated career paths and development in specialized areas

Disadvantages:
Impeded communication and coordination due to differences in values and orientations
May lead to short term thinking
Difficult to establish uniform performance standards

Question 5

Divisional Structure

Answer 5

An organizational form in which products, projects, or product markets are grouped internally

Also called multi divisional structure or M-form

Question 6

SBU Structure

Strategic business unit

Answer 6

An organizational form in which products, projects, or product market divisions are grouped into homogeneous units

Question 7

Matrix Structure

Answer 7

An organizational form in which there are multiple lines of authority and some individuals report to at least two managers