BPL 5100 Chapter 10: Creating Effective Organizational Designs || with Error-free Solutions

Organizational structure correct answers the formalized patterns of interactions that link a firm's tasks, technologies, and people *Structure provides a means of balancing two conflicting forces: a need for the division of tasks into meaningful groupings and the need to integrate such groupings in order to ensure efficiency and effectiveness *The growth patterns of major corporations and the relationship between a firm's strategy and its structure *Each of the traditional types of organizational structure: simple, functional, divisional, and matrix Simple structure correct answers an organizational form in which the owner-manager makes most of the decisions and controls activities, and the staff serves as an extension of the top executive Simple structure Advantages correct answers ・highly informal, and the coordination of tasks is accomplished by direct supervision ・Highly centralized decision making, little specialization of tasks, few rules, and regulations, and informal evaluation and reward system Simple structure Disadvantages correct answers ・May foster creativity and individualism ・Employees may not understand their responsibilities, which can lead to conflict and confusion ・Because lack of regulations, and act in employees self-interest, which can erode motivation and satisfaction and lead to the possible misuse of organizational resources ・Without potential for future advancement, recruiting and retaining talent may become very difficult Functional organizational structure correct answers an organizational form in which the major functions of the firm, such as production, marketing R&D, and accounting, are grouped internally Functional organizational structure Advantages correct answers ・A firm is able to enhance its coordination and control within each of the functional areas. ・Central decision making enhances the organizational-level (as opposed to functional area) perspective across the various functions in the organization.