OTD Chapter 6 Flashcards

1
Q

Functional structure

A

Structure that groups people together on the basis of their common expertise and experience, or because they use the same resources.

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2
Q

Central problems in a functional structure

A
Communication problems
Measurement problems
Location problems
Customer problems
Strategic problems
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3
Q

Communication problems - functional structure

A

As more organizational functions develop, each with its own hierarchy, they can become increasingly distant from one another.

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4
Q

Measurement problems - functional structure

A

To exercise control over a task or authority, there has to be a way to measure it.

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5
Q

Location problems - functional structure

A

As a company grows, it may need to set up shop and establish manufacturing or sales facilities in different geographic regions to serve customers better.

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6
Q

Customer problems - functional structure

A

The ability to identify and satisfy customer needs may fall short and sales opportunities are lost.

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7
Q

Strategic problems - functional structure

A

As an organization becomes more complex, top managers may be forced to spend so much time finding solutions to everyday problems in coordination, that they have no time to address the longer-term strategic problems facing the company.

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8
Q

Complex structures is a result of three choices

A

Vertical differentiation
Horizontal differentiation
Integration

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9
Q

Divisional structure

A

Structure in which functions are grouped together according to the specific demands of products, markets, or customers.

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10
Q

Product structure

A

A divisional structure in which products are grouped into separate divisions, according to their differences or similarities.

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11
Q

Three kinds of product structures

A

Product-divisional structure
Multidivisional structure
Product-team structure

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12
Q

Product-divisional structure

A

A structure in which a centralised set of support functions service the needs of a number of different product lines.

(E.g., soup, frozen vegetables, baked goods.)

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13
Q

Multidivisional structure

A

A structure in which support functions are placed in self-contained divisions (S&M, R&D, Finance).

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14
Q

Product-team structure

A

A structure in which specialists from the support functions are combined into product-development teams that specialize in the needs of a particular kind of product.

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15
Q

Geographic structure

A

A structure in which divisions are organization according to the requirement of the different locations in which the organization operates. (Central support function)

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16
Q

Market structure

A

A structure aligning functional skills and competences with the product needs of different customer groups.

(E.g., commercial division, consumer division, government division, corporate division) (central support function).

17
Q

Matrix structure

A

A structure in which people and resources are grouped in two ways simultaneously: by function and by product.

Often, employees in this structure are two-boss employees.

18
Q

Multidivisional matrix structure

A

A structure that provides for more integration between corporate and divisional managers and between divisional managers.

19
Q

Hybrid structure

A

A structure of a large organization that has many divisions and simultaneously uses many different types of organizational structure.

20
Q

Network structure

A

A cluster of different organizations whose actions are coordinated by contracts and agreements rather than by a formal hierarchy of authority.

E.g., H&M outsourcing production and processing to Asia.

21
Q

Boundaryless organization

A

In this organization, the boundaries that divide employees (such as hierarchy, job function, and geography, as well as those that distance companies from suppliers and customers, are broken down.