Exam 13: Designing Organizational Structures

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The increasing recognition that an organization has only a few core competencies is one of the forces pushing towards more:

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Which form of departmentalization increases the risk of duplication and underutilization of resources?

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Standardizing processes is less effective in nonroutine and complex work.

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Decentralization is the logical choice in simple,integrated (one market)and hostile environments.

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The two fundamental requirements of all organizational structures are divisionalization and decentralization.

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One of the defining characteristics of a functional organizational structure is that it:

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Organizational and environmental complexity push organizations towards:

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A mechanistic organizational structure works better than an organic structure when:

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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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The more diversified the environment,the more the firm would benefit from a divisionalized form of departmentalization.

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All organizations have:

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Network structures:

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Organizations operating in diverse environments should:

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Departmentalization establishes interdependencies and coordination through informal communication within each work unit.

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What role does organizational strategy play in designing organizations?

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Organic structures are better suited to hostile environments.

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Which form of departmentalization organizes employees around specific skills or other resources?

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Mechanistic structures operate best:

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Compared with divisionalized structures,functional structures are known to:

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The matrix structure can increase conflict among managers who share power equally.

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