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Questions and Answers
What is the most common organizational structure for businesses?
What is the most common organizational structure for businesses?
- Divisional structure
- Matrix structure
- Functional structure (correct)
- Network structure
Which of the following is an example of a cross-functional business process?
Which of the following is an example of a cross-functional business process?
- Employee performance evaluation
- Customer complaint resolution
- Inventory management (correct)
- Payroll processing
What is required for successful completion of a business process?
What is required for successful completion of a business process?
- Clear communication among functional groups (correct)
- Limited interaction between functional groups
- Independent decision-making by each department
- Strict adherence to departmental boundaries
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Study Notes
- Understanding business operations requires a holistic approach.
- Functional structure is the most common organizational structure.
- Functions or departments are responsible for closely related activities.
- Typical functions include purchasing, operations, sales, etc.
- Integrated business processes cut across functional silos.
- Business processes are cross-functional and shared responsibility.
- Successful completion of a process requires coordination among functional groups.
- Procurement and fulfillment processes are examples of cross-functional processes.
- Figure 1-1 illustrates the key functions and cross-functional nature of business processes.
- Coordinating functional groups may not be easy.
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