Exam 13: Designing Organizational Structures

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One problem with a functional structure is that

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Some matrix structures typically overlay a divisional structure with a functional structure to gain the benefits of both.

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High levels of formalization tend to undermine organizational learning and creativity

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Communication flows in all directions with little concern for the formal hierarchy in

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Large organizations can encourage coordination through informal communication by assigning liaison roles to employees.

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An organic structure has

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Which organizational design element determines how employees and their activities are grouped together?

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Decentralization is more likely to occur when:

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Companies can be centralized in some parts of the organization and decentralized in other parts.

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Simple structure usually relies on which of the following to coordinate work activities?

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What role does organizational strategy play in designing organizations?

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Some types of matrix structure overlay a functional structure with

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Formalization in organizational structures tends to

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Rather than producing a standard product or service for the marketplace, Protegé Engineering completes special projects for clients. These projects require between six months and two years to complete and demand highly specialized knowledge in engineering, production management, and computer science. Most of the 600 employees working for Protegé Engineering have university degrees in these fields; a few have doctorates. Identify the best organizational structure for Protegé Engineering and justify your recommendation.

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Executives at CelCorp, a major telecommunications company, are concerned that its organizational structure is ineffective. The company currently has a functional structure in which employees are grouped by specialization: manufacturing, marketing, research, administration, etc. CelCorp has manufacturing plants in six countries throughout the globe, marketing operations in several dozen countries, and research and development centers in three countries. The company makes three distinct products with approximately equal revenue: mobile telephones, satellite communication systems and Internet routers. Recommend a new organizational structure for CelCorp and justify your decision.

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Larger firms tend to be more centralized and make greater use of direct supervision than do smaller firms.

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What is a network structure? Why do some writers believe that a network structure is an effective design for global competition?

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