5 Questions
What is the main disadvantage of a functional structure?
Difficulty in measuring performance
What is the main benefit of the matrix structure?
Liaison devices
What is the main purpose of decentralization?
To respond quickly to local conditions
What is vertical decentralization?
The dispersal of formal power down the chain of line authority
What is horizontal decentralization?
The extent to which nonmanagers control decision processes
Study Notes
- Functional structures encourage specialization and often individuals focus on their own means rather than the organization's broader ends.
- Performance cannot easily be measured and functional structures lack the mechanism of cording the work flow.
- More bureaucratic, with more formalized work, functional structures are typically taller organizational structures.
- Unit size in relationship to coordinating mechanisms is related to the type of coordinating mechanism used.
- The matrix structure sacrifices the principle of unity of command while the dual authority structure with a delicate balance of power preserves it.
- The matrix structure is best suited for liaison devices, while the dual authority structure is best suited for more centralized coordination.
- Centralization is the tightest means of coordinating decision making in the organization.
- Decentralization allows the organization to respond quickly to local conditions.
- It is also a stimulus for motivation.
- Vertical decentralization: Refers to the dispersal of formal power down the chain of line authority, from the strategic apex down to the middle line.
- Horizontal decentralization: Refers to the extent to which nonmanagers control decision processes.
Test your knowledge of organizational structures, coordinating mechanisms, and centralization with this quiz. Explore the concepts of functional structures, matrix structures, decentralization, and more.
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