Podcast
Questions and Answers
What can lead to inefficiency in a marketing management team?
What can lead to inefficiency in a marketing management team?
Which of the following is NOT a criterion for evaluating organizational strategies according to Peter Drucker?
Which of the following is NOT a criterion for evaluating organizational strategies according to Peter Drucker?
Why is flexibility important for an organization?
Why is flexibility important for an organization?
Which organizational structure is known to facilitate control and coordination among employees?
Which organizational structure is known to facilitate control and coordination among employees?
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What aspect should organizations prioritize for successful performance?
What aspect should organizations prioritize for successful performance?
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Which of the following is a strong point of a matrix structure?
Which of the following is a strong point of a matrix structure?
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What is a basic procedure for evaluating organizational performance?
What is a basic procedure for evaluating organizational performance?
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What is a primary reason for organizations to adopt a specific structural arrangement?
What is a primary reason for organizations to adopt a specific structural arrangement?
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Which of the following is NOT an advantage of territorial organizational structure?
Which of the following is NOT an advantage of territorial organizational structure?
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How should an organization structure its departments to achieve its overall goals?
How should an organization structure its departments to achieve its overall goals?
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What characterizes a functional organizational structure?
What characterizes a functional organizational structure?
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What is the main goal of assembling human resources into units or projects?
What is the main goal of assembling human resources into units or projects?
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What is a potential disadvantage of adopting a territorial structure in management?
What is a potential disadvantage of adopting a territorial structure in management?
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Which factor is crucial for the success of a territorial organizational structure?
Which factor is crucial for the success of a territorial organizational structure?
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In a product organizational structure, the primary responsibility of marketing managers includes which of the following?
In a product organizational structure, the primary responsibility of marketing managers includes which of the following?
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What is one of the long-term goals for managers in a product organizational structure?
What is one of the long-term goals for managers in a product organizational structure?
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Which of the following is NOT a task typically performed by marketing managers within a product organizational structure?
Which of the following is NOT a task typically performed by marketing managers within a product organizational structure?
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What is a key benefit of a market-centered approach when introducing a new product?
What is a key benefit of a market-centered approach when introducing a new product?
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Why would a manufacturer diversify into services?
Why would a manufacturer diversify into services?
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What role does marketing intelligence play in a market-centered approach?
What role does marketing intelligence play in a market-centered approach?
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What does market centering allow manufacturers to gather more efficiently?
What does market centering allow manufacturers to gather more efficiently?
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How is a market-centered organizational structure typically structured?
How is a market-centered organizational structure typically structured?
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What is a potential challenge when dividing marketing functions at the corporate level?
What is a potential challenge when dividing marketing functions at the corporate level?
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Which factor influences whether a division has its own marketing structure?
Which factor influences whether a division has its own marketing structure?
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What is the primary emphasis of the SBU organizational structure?
What is the primary emphasis of the SBU organizational structure?
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Study Notes
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.
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Description
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.
