Principles of Effective Organization Design in Strategic Management
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Questions and Answers

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?

    <p>Network Structure</p> Signup and view all the answers

    What characterizes the empowerment approach mentioned in the text?

    <p>Narrow jobs have become enriched and enlarged</p> Signup and view all the answers

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

    <p>Formal Reporting Relationships</p> Signup and view all the answers

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

    <p>Organization Chart</p> Signup and view all the answers

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

    <p>Structure Follows Strategy</p> Signup and view all the answers

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

    <p>Design of Systems</p> Signup and view all the answers

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

    <p>Organization Chart</p> 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?

    <p>Matrix Structure</p> 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?

    <p>Divisional Structure</p> Signup and view all the answers

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

    <p>Network Structure</p> Signup and view all the answers

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

    <p>Team-Product Structure</p> 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?

    <p>Empowerment</p> Signup and view all the answers

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

    <p>Adapting to environmental uncertainty</p> Signup and view all the answers

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

    <p>Organizational structure is shaped by the chosen strategy</p> Signup and view all the answers

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

    <p>Influencing the span of control of managers</p> Signup and view all the answers

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

    <p>Degree of formal reporting relationships</p> 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?

    <p>Formal reporting relationships</p> Signup and view all the answers

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