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Questions and Answers
What is the main disadvantage of a functional structure?
What is the main disadvantage of a functional structure?
- Difficulty in measuring performance (correct)
- Lack of specialization
- Taller organizational structure
- Difficulty in coordinating work flow
What is the main benefit of the matrix structure?
What is the main benefit of the matrix structure?
- Balance of power
- Liaison devices (correct)
- Unity of command
- Quick response to local conditions
What is the main purpose of decentralization?
What is the main purpose of decentralization?
- To motivate employees
- To coordinate decision making
- To respond quickly to local conditions (correct)
- To preserve unity of command
What is vertical decentralization?
What is vertical decentralization?
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What is horizontal decentralization?
What is horizontal decentralization?
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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.
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