18 Questions
What is a characteristic of cross-functional and product-specific teams?
Decentralized decision-making
What is an advantage of matrix structures?
Combining functional efficiency with divisional flexibility
What is a disadvantage of employees in matrix structures having two supervisors?
Increased stress and uncertainty
What is the main characteristic of network organizations?
Coordination by contracts rather than formal hierarchies
In network organizations, what key decision do organizations need to make?
Which capabilities to own/control and which to outsource
What is an outcome of employees complaining about stress and uncertainty in matrix structures?
Possible imbalance between interests due to dominance
What is a potential downside of the Product-Team structure?
Economies of scale and scope may be lost
Why are Regional Organizations suitable in cases where customers buy from specific areas?
To align with regional customer needs
What is a characteristic of Customer-Oriented Organizations?
Focuses on specific customer groups' needs
How does Customer-Centric structure impact performance?
By improving customer satisfaction
What is a key benefit of Profit Center within organizations?
Clear accountability and financial control
How do Divisional vs. Customer-Centric Organizations differ in their focus?
Divisional structures enhance performance by increasing customer satisfaction, while Customer-Centric improves coordination
What is the primary advantage of organizing a business unit as a profit center?
It allows for the evaluation of the financial performance of each division.
Which of the following is a precondition for organizing business units as profit centers?
Compatibility of objectives and independence of profit centers.
How are internal prices determined for exchanging products, services, or information between divisions or departments?
Based on negotiations or service-level agreements (SLAs) between divisions.
What is the concept of an 'Enterprise' in the context of modern organizational forms?
A sustained network of legally independent organizations operating under common leadership.
What is the primary characteristic of a process organization?
Processes are designed to achieve organizational objectives.
Which of the following statements about process organizations is true?
Processes have clearly defined outputs and are market-oriented.
Test your knowledge on evaluating the performance of profit centers within organizational divisions, operational control systems, and financial assessments. Explore concepts like compatibility of objectives, internal pricing, and independence of profit centers.
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