Unit 4

Question 1

Why is it important to organize?

Answer 1

• places the right people in the right job, and defines job roles
• identify individual and group responsibilities
• place the right resources in the right place
• generate effective group action
• helps to explain behavior, and reduce uncertainty
• a means and a tool to achieve defined company strategic objectives

Question 2

environmental complexity

Answer 2

how the company is organized is closely related to the environmental complexity

companies producing a single type of product for one market, using standard technology and processes, and working with a small group of suppliers (ex, resturant in madrid) has low environmental complexity

a compnay making a range of very different product in factories across the world, using different types of technology, dealing with many suppliers, and selling in many different markets with multiple retail outlets has a HIGH environmental complexity

Question 3

5 ways of dividing up work

Answer 3

function (for small companies)
geographic (common for MNCs)
Product and Services ( common with diversified organizations)
Customer and market (common with dealing with different
customer profiles)
Process (ex, judicial systems)

many MNCs combine several

Question 4

Functional structure

Answer 4

we group people together departments by common activities, skills and resource use

used: stable small environment, goals of efficiency
pros: in depth skill specialization, good use of resources
cons: poor communication across functions (silo mentality), slow to adapt, one stays loyal to ones function rather than customer

Question 5

Divisional structure

Answer 5

Grouped together based on a common product, customer or geo region. functions are split amongst divisions

we use when: unstable environment, large size, goals of product specialization

pros: adapt to local market, in touch with customers need, good coordination and communication across function
cons: duplication of resources, more managers needed, poor communication across divisions, less senior manager

Question 6

Hybrid structure

Answer 6

Contains elements of both functional and divisional structure

used in unstable environments, large size, goal is local adaption and global perspective

pros: coordination within and between divisions, alignment between corporate and divisional goals
cons: conflict between divisons and corprate departments, high administrative costs

Question 7

Matric model

Answer 7

when to use: medium to large size, dual goals of product and geographical specialization, need for knowledge sharing and innovation

pros: flexible, efficient use of resources and allocation specialists, takes advantages of both functional and divisional structures, focus and adaption and innovation
cons: high conflict risk (many bosses), power struggles, many meetings, requires extensive human relations training

Question 8

project team structure