MGMT 449 CH 10 || Possible Questions Accurately Answered.
Organizational structure correct answers refers to formalized patterns of interactions linking:
▪Tasks
▪Technologies
▪People
Structure correct answers provides a balance between:
▪The need for divisionof tasks into meaningful groupings
▪The need to integratethese groupings for maximum efficiency and effectiveness
simple organizational structure correct answers is the oldest & most common organizational
form, where:
▪The organization is small, with a single or very narrow product line
▪The owner-manager makes most of the decisions
▪The staff serves as an extension of the top executive
functional organizational structure correct answers is where the major functions of the firm are
grouped internally:
▪The organization is small, with a single or closely related product or service, high production
volume, perhaps some vertical integration
▪The owner-manager needs specialists in various functional areas
▪The chief executive has responsibility for coordination & integration of the functional areas
EX: manager of Personnel, Manager of Accounting, Manager of Engineering
Divisional organizational structure (Multi-division or M form) correct answers is where
products, projects, or product markets are grouped internally:
, ▪Divisions are relatively autonomous, consisting of products & services that are different from
those of other divisions
▪Although governed by a central corporate office, each division includes its own functional
specialists
▪Division executives help determine product-market & financial objectives; decision making
(especially operational) is delegated to lower-level managers
holding company structure correct answers is where businesses in a corporation's portfolio are
the result of unrelated diversification:
▪Variation on the divisional structure
▪Similarities are few, so synergies are limited
▪Operating divisions have autonomy
▪Corporate staffs are small & have limited involvement, relying on financial controls & incentive
programs to obtain performance
Matrix organizational structure correct answers is a company structure in which the reporting
relationships are set up as a grid, rather than in the traditional hierarchy. In other words,
employees have dual reporting relationships - generally to both a functional manager and a
product manager.
▪Project managers & functional/Geographic managers share responsibility
▪Product managers handle development, manufacturing & distribution of their own line
▪Geographic managers are responsible for profitability of the business in their regions
▪Functional managers are responsible for effective and efficient operation of their functions
Matrix Structure Advantages correct answers ▪Increases market responsiveness, collaboration &
synergies
▪Allows more efficient utilization of resources
▪Improves flexibility, coordination & communication
▪Increases professional development
Organizational structure correct answers refers to formalized patterns of interactions linking:
▪Tasks
▪Technologies
▪People
Structure correct answers provides a balance between:
▪The need for divisionof tasks into meaningful groupings
▪The need to integratethese groupings for maximum efficiency and effectiveness
simple organizational structure correct answers is the oldest & most common organizational
form, where:
▪The organization is small, with a single or very narrow product line
▪The owner-manager makes most of the decisions
▪The staff serves as an extension of the top executive
functional organizational structure correct answers is where the major functions of the firm are
grouped internally:
▪The organization is small, with a single or closely related product or service, high production
volume, perhaps some vertical integration
▪The owner-manager needs specialists in various functional areas
▪The chief executive has responsibility for coordination & integration of the functional areas
EX: manager of Personnel, Manager of Accounting, Manager of Engineering
Divisional organizational structure (Multi-division or M form) correct answers is where
products, projects, or product markets are grouped internally:
, ▪Divisions are relatively autonomous, consisting of products & services that are different from
those of other divisions
▪Although governed by a central corporate office, each division includes its own functional
specialists
▪Division executives help determine product-market & financial objectives; decision making
(especially operational) is delegated to lower-level managers
holding company structure correct answers is where businesses in a corporation's portfolio are
the result of unrelated diversification:
▪Variation on the divisional structure
▪Similarities are few, so synergies are limited
▪Operating divisions have autonomy
▪Corporate staffs are small & have limited involvement, relying on financial controls & incentive
programs to obtain performance
Matrix organizational structure correct answers is a company structure in which the reporting
relationships are set up as a grid, rather than in the traditional hierarchy. In other words,
employees have dual reporting relationships - generally to both a functional manager and a
product manager.
▪Project managers & functional/Geographic managers share responsibility
▪Product managers handle development, manufacturing & distribution of their own line
▪Geographic managers are responsible for profitability of the business in their regions
▪Functional managers are responsible for effective and efficient operation of their functions
Matrix Structure Advantages correct answers ▪Increases market responsiveness, collaboration &
synergies
▪Allows more efficient utilization of resources
▪Improves flexibility, coordination & communication
▪Increases professional development
