Principles of Effective Organization Design in Strategic Management

Play an AI-generated podcast conversation about this lesson

What is the defining characteristic of the functional structure?

Sharing scarce resources

Grouping people with similar skills and tasks (correct)

Grouping people based on product or customer

Delegating decisions to self-directed teams

Which structure is suitable for managing a complex and uncertain external environment?

Matrix Structure (correct)

Divisional Structure

Network Structure

Team-Product Structure

What is the key feature of the team-product structure?

Maintaining a balance of power between functional and divisional form

Cross-functional, self-directed teams (correct)

Delegating decisions to self-directed teams

Outsourcing most major functions

In which structure are most major functions or processes outsourced?

Network Structure Signup and view all the answers

What characterizes the empowerment approach mentioned in the text?

Narrow jobs have become enriched and enlarged Signup and view all the answers

What is the key component in the definition of organizational structure?

Formal Reporting Relationships Signup and view all the answers

Which diagram shows all people, positions, reporting relationships, and lines of formal communication in an organization?

Organization Chart Signup and view all the answers

What principle states that strategy leads to a change in organizational structure?

Structure Follows Strategy Signup and view all the answers

Which concept emphasizes the need for effective communication, coordination, and integration of efforts across departments?

Design of Systems Signup and view all the answers

According to the text, what reflects the organization's structure?

Organization Chart Signup and view all the answers

Which organizational structure is most suitable for an organization facing a scarcity of resources and a complex, uncertain external environment?

Matrix Structure Signup and view all the answers

In which organizational structure are people with similar skills and performing similar tasks grouped together into formal work units?

Divisional Structure Signup and view all the answers

Which design trend involves outsourcing most major functions or processes and coordinating activities from a small headquarters organization?

Network Structure Signup and view all the answers

Which organizational structure emphasizes empowerment, cross-functional self-directed teams, and a culture of open trust and collaboration?

Team-Product Structure Signup and view all the answers

Which approach involves enriching and enlarging narrow jobs, delegating more information and decisions to self-directed teams, and granting employees the freedom to make decisions?

Empowerment Signup and view all the answers

What is the primary focus of contingency theory as mentioned in the text?

Adapting to environmental uncertainty Signup and view all the answers

In the context of organization design, what does 'Structure Follows Strategy' mean?

Organizational structure is shaped by the chosen strategy Signup and view all the answers

What is the significance of the formal reporting relationships in the definition of organizational structure?

Influencing the span of control of managers Signup and view all the answers

What primarily differentiates mechanistic and organic design as discussed in the text?

Degree of formal reporting relationships Signup and view all the answers

What is emphasized in the design of systems to ensure effective communication, coordination, and integration of efforts across departments?

Formal reporting relationships Signup and view all the answers