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Questions and Answers
What is the backbone of all operating procedures and workflows at a company?
Who developed the strategic choice model that results in an organizational structure determined by the top management coalition?
Which organizational structure contains a direct chain of command from the top of the organization to the bottom?
What does departmentalization help achieve within an organization?
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Which common organizational structure involves organizing departments based on specialized functions like marketing, finance, and operations?
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What is a key benefit of departmentalization in organizations?
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Which type of organizational structure emphasizes cross-departmental collaboration and team-based projects?
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How does divisional departmentalization differ from functional departmentalization?
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How does a flat organizational structure differ from a hierarchical structure?
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What characteristic defines a matrix organizational structure?
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Study Notes
Organizational Structures
- A functional structure groups employees by specialty, skill, or related roles, with departments led by designated leaders, to attain success in projects.
- Divisional structures include:
- Market-based divisional structure, separating structures based on products.
- Product-based divisional structure, organizing companies by what they sell.
- Geographic divisional structure, separating by territory, region, or district, for effective localization and logistics.
Flat Structure
- An organizational model with relatively few or no levels of middle management between executives and frontline employees.
- Eliminates middle management, allowing for direct communication between workers and top decision-makers.
Matrix Structure
- A combination of two or more different kinds of organizational structures, such as project management or functional management.
- Characterized by multiple managerial accountability and responsibility.
Network Structure
- A structure where multiple organizations combine to produce a good or service.
- Can involve partnerships or outsourcing functions like marketing, production, sales, etc.
Departmentalization
- Divides an organization into departments to improve communication, coordination, and productivity.
- Objectives include:
- Coordinating efforts
- Reducing communication costs
- Improving efficiency and effectiveness
- Clarifying responsibilities
- Achieving division of labor
- Improving workflow
- Boosting worker morale
- Scaling up
Organizational Design
- The interaction of decisions and behaviors resulting in an organizational structure.
- Involves dividing activities and responsibilities, and distributing authority among individuals.
Organizational Structure
- The backbone of operating procedures and workflows in a company.
- Determines the role of each employee and is key to organizational development.
John Child's Strategic Choice Model
- A British sociologist's model, where organizational structure is determined by the coalition of top management.
- Factors influencing organizational structure include:
- Environmental constraints
- Strategic decisions made by dominant coalition
- Top management's personal beliefs, attitudes, values, and ethics
- Organizational effectiveness targets
Corrective Action
- The six common organizational structures are:
- Hierarchical structure
- Functional structure
- Flat structure
- Divisional structure
- Matrix structure
- Network structure
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Description
Test your knowledge on different organizational structures, specifically the Functional Structure and Divisional Structure. Learn about how employees are grouped in these structures and the benefits they provide to organizations.
