MBA 705 Minsun Kim Exam 4 (All Solved)

Organizational Structure correct answers refers to the formal means by which work is coordinated in an organization. The structure exists to provide control and coordination for the organization Simple structure correct answers a form of organization in which in a new business, each employee often performs multiple tasks and the owner/manager is involved in all aspects of the business Vertical Growth correct answers refers to an increase in the length of the organization's hierarchy (i.e. levels of management) Span of Control correct answers the number of employees reporting to each manager Tall organization correct answers compromised of many hierarchical levels and narrow spans of control-- a tall organization tends to be best suited for a stable environment Advantage: more effective communication and less difficulty in planning Flat Organization correct answers has few levels in its hierarchy and a wide span of control from top to bottom Advantage: lower administrative costs and increased authority for managers Centralization correct answers most strategic and operating decisions are made by managers at the top of the organization structure Decentralization correct answers most strategic and operating decisions are made by managers at lower levels of the organization Horizontal Growth correct answers an increase in the breadth of an organization's structure Downsizing correct answers occurs when one or more hierarchical levels- typically middle managers - is eliminated Four Options for Structural Forms correct answers 1. Functional Structure 2. Product Divisional Structure 3. Geographic Divisional Structure 4. Matrix structure (product and geographic divisional structures are also called multidivisional or M-form structures) Functional Structure correct answers - each subunit of the organization engages in firm-wide activities related to a particular function, such as marketing, HR, finance, or production -common to new organizations -emphasizes specialization (Groups specialists)