Business Structure and Culture Chapter 8

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Questions and Answers

What is a primary factor that influences the structure of an organization?

  • Customer feedback mechanisms
  • The location of the company's headquarters
  • Size of the organization (correct)
  • Cultural beliefs of employees

Which of the following is NOT one of the types of organization structures discussed?

  • Functional structure
  • Geographic structure
  • Divisional structure
  • Matrix structure (correct)

What is a core component associated with designing a business system?

  • Operational processes (correct)
  • Employee salaries and benefits
  • Customer demographics
  • Marketing strategies

What does organizational culture primarily define?

<p>How individuals behave and react (C)</p> Signup and view all the answers

Which of the following is NOT considered a fundamental zone for desired culture?

<p>Market analysis (B)</p> Signup and view all the answers

What is a common element of restructuring?

<p>Structural design (D)</p> Signup and view all the answers

Which criterion is NOT part of the key management approach criteria?

<p>Geographic expansion (C)</p> Signup and view all the answers

Which question addresses the management approach in developing an organization?

<p>What management approach will support activities? (B)</p> Signup and view all the answers

Flashcards

Business System Design

The process of shaping an organization's structure, culture, management approach, control systems, talent management, and operational processes to align with its strategic goals.

Organizational Framework Types

Different organizational structures, such as functional, customer, divisional, and geographic, cater to specific needs and complexities.

Building Blocks of Organization Structure

Key elements like customer intimacy, work efficiency, and departmentalization contribute to a successful organization.

Culture and Environment

How individuals within an organization behave and respond to internal and external challenges defines its culture.

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Key Management Approach Criteria

Factors such as hierarchy, control span, decision-making process, work coordination, and the nature of work influence a management approach.

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Restructuring Concept

The process of making changes to an organization's structure, processes, or systems to align with its strategy due to disruptions.

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3 Elements of Restructuring

Restructuring involves redesigning the organizational structure, executing the changes effectively, and ensuring clear communication throughout the process.

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Desired Culture Zones

Four key areas – employee interaction, risk allowance, control protocols, and competitive emphasis – define the desired culture of an organization.

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Study Notes

Developing Your Business Structure and Culture (Chapter 8)

  • The chapter focuses on designing business systems, strategy execution frameworks, organizational structures, and restructuring.
  • Objectives include understanding core components of business systems, key decision-making areas, factors in creating operating structures, management approaches, and restructuring concepts.
  • Business system design encompasses organization structure, culture, management approach, control systems (for strategic intent), talent management mechanisms, operational processes and market alignment.
  • Developing organizational framework involves identifying the best structure for relationships, required culture/environment for market positioning, and management approaches for supporting organizational activities and interactions.
  • Common organizational structures include functional, customer, divisional, and geographic structures.
  • Factors influencing organizational structure selection include size, geographic dispersion, business undertakings, task specialization, and communication leverage.
  • Key building blocks of organizational structure include customer intimacy, work efficiency, and departmentalization.
  • Organizational culture defines how individuals behave and respond to internal and external stimuli. Key aspects are connectivity and integration.
  • Four fundamental zones for desired culture include employee interaction, risk allowance, control protocols, and competitive emphasis.
  • Key management approach criteria include hierarchy requirements, span control, decision-making control, work effort coordination, and nature of work.
  • Restructuring occurs when a disconnect between intended strategy and actual circumstances (internal or external) is identified, and the goal is refocusing efforts.
  • Key elements of restructuring include structural design, execution, and effective communication plans.

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