Organizational Structure - Module 6 Quiz

Learning Objectives

• Students will be able to discuss different organizational structures.
• Students will be able to give examples of various organizational structure types.
• Students will be able to explain what factors influence a company's choice of organizational structure.
• Students will be able to assess the value each organizational component contributes to a business.
• Students will be able to demonstrate the role of leadership in an organization.
• Students will be able to show the importance of organizational policies.

Module 6 Organizational Systems

• Organizational structure is the system used to allow a group of individuals to achieve set goals.
• Organizational structure is influenced by many factors including technological, environmental, management, employee, customer, government, and social factors.

Organizational Structure

• A successful organization must have a structure that fits its specific strategies.
• A well-structured organization can easily adapt to changing conditions.
• Organizational structure is comprised of components that must work together for the company to succeed.

Types of Organizational Structures

• Companies will adopt various organizational structures depending on their goals and objectives.
• Examples of organizational structures include: functional, territorial, product, market-centered, and matrix.

Functional Organizational Structure

• Common when the company needs to specialize employees in different functions.
• Groups similar skills together in departments.
• Examples: human resources, marketing, production, and finance.

Territorial Organizational Structure

• Useful when serving customers across a geographically spread market.
• Divisions are set up by location (regions).
• Managers are familiar with a specific territory and local conditions.
• Can be less efficient as the product line becomes more diverse.

Product Organizational Structure

• Used by companies with diverse products sold to different markets.
• Managers focused on each product group, coordinating to maximize sales in their market territory.
• A good product structure can be controlled if it is monitored and properly managed.
• In place when the products are diverse in nature.

Market Centered Organizational Structure

• Useful when the company has different markets and groups of customers.
• Decentralized to focus on the needs of a specific market.
• Suitable for competitive, innovative, and service-oriented companies and industries.

SBU Organizational Structure

• Organizations use this to divide their markets and regions into smaller business units (SBUs) to serve different clients.
• Staff provide services to different regions such as marketing, media planning and research.

Matrix Organizational Structure

• A complex structure intended to combine the benefits of functional and divisional structures.
• Multiple reporting relationships lead to shared resources and responsibilities.
• More complex, but is best suited to projects that need intensive collaboration across different functional areas or departments.

Evaluation of an Organizational Structure

• Control: Comparing actual performance to planned standards.
• Coordination: Alignment of individual actions within the organization.
• Information: Provision of data to manage and make decisions.
• Cost: Optimization of resources.
• Adaptability: The ability for a company to react to changing circumstances.

Organizational Components

• Management: Oversees and coordinates all activities.
• Employees: Perform tasks to achieve company goals.
• Facilities/Equipment: Support and aid business operations.
• Financial Resources: Funds for operations and expenses.
• Organizational Policies: Set procedure and processes for the organization to operate as smoothly as possible.

Roles of Leaders

• Planning: Establish company goals.
• Organizing: Divide tasks and structure procedures.
• Staffing: Recruit, hire, and train workers.
• Directing: Motivate workers to accomplish goals.
• Controlling: Measure, monitor and implement corrections.

Organizational Policies

• These are guidelines/procedures that ensure smooth operations of the company.
• Good policies provide structure, efficiency, and clarity, avoiding operational problems.

Test your knowledge on the various organizational structures and their importance in achieving business goals. This quiz covers factors influencing organizational choices, leadership roles, and the value of organizational policies. Assess your understanding of how different elements work together within an organization.