Exam 13: Designing Organizational Structures

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For many years,Quokka Consumer Ltd.has had a geographic divisionalized organizational structure.Now,the company is rethinking the appropriateness of this structure compared to other divisionalized structures.Describe the two other divisionalized structures that Quokka can consider adopting and give two explanations why Quokka might want to move away from the geographic structure.

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To answer this question,students first need to briefly describe both the product structure and client structure.A diagram or example of both types may be useful.Next,students need to provide two explanations why Quokka might want to shift to one of these structures rather than the geographic structure.In most cases,students would adapt one of the explanations in the textbook regarding why companies are moving away from geographic structures.However,keep in mind that students might develop other logical explanations.The three explanations from the textbook are:
1.Information technology.This reduces the need for local representation.Clients can purchase online and communicate with businesses from almost anywhere in the world,so local representation is less critical.
2.Freer trade.Geographical structures are also waning because freer trade has reduced government intervention in some products,and consumer preferences in many product and service areas are becoming more similar (converging)around the world.
3.Global customers.Business customers are becoming more global,and they want one global point of purchase,not one in every country or region.

A wholesale grocery business operates in one city and provides one service - stocking retailers with fresh produce.The company wants to ensure that employees develop expertise in their skill specialization and that these specializations are used efficiently.What form of departmentalization would be most appropriate here?

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D

Companies are more likely to form network structures when:

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C

Organizations tend to centralize as their external environment becomes more complex.

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Many companies claim to have a team-based organization,yet relatively few have actually adopted this form of departmentalization.Describe three (3)structural features that would suggest that a company has adopted a team-based organizational structure.

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Organizations tend to form two clusters based on their span of control,centralization,and formalization.The two clusters represented by these organizational design features are called:

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A consumer products firm with a functional structure is expanding from a single product line into several diverse product groups,with most sales within the one country.What form of departmentalization should it eventually adopt to manage the new conditions most effectively?

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Traditional management theorists set the maximum span of control at 20 people,but this number may be higher where work activities are routine and standardized.

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A virtual corporation is a form of network structure that reshapes itself quickly to fit immediate needs,usually for a specific client.

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As soon as people divide work among themselves,they need to:

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While preparing for a final examination in organizational behavior,you and a student in another class review the important information regarding organizational structure and design.During the conversation,the other student suggests that just about everything you need to know about organizational structure can be based on knowing the different types of departmentalization.In other words,all of the key features of organizational structure,including a structure's fundamental requirements and elements,are found in descriptions of functional structure,divisionalized structure and other forms of departmentalization.Discuss the accuracy of this statement.

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Which organizational design element determines who shares resources and encourages coordination through informal communication?

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A matrix structure often combines which two forms of departmentalization?

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A mechanistic structure is decentralized,has a narrow span of control and little formalization.

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Organic structures are better than mechanistic structures for:

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What must senior executives,functional managers,and project leaders do to make a matrix structure more effective?

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Simple structures usually rely on which of the following to coordinate work activities?

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Informal communication as a coordinating mechanism is ineffective in nonroutine situations.

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Formalization in organizational structures tends to:

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A divisionalized structure is recommended mainly for:

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