OTD Chapter 6 Exam Questions Correct Answers Current Update (A+ Pass)
Functional structure - Answers - Grouping people together based on common expertise/experience or because they use the same resources.
Foundation of horizontal differentiation
Advantages of functional structure - Answers...
OTD Chapter 6 Exam Questions Correct
Answers Current Update (A+ Pass)
Functional structure - Answers -✔✔ Grouping people together based on common
expertise/experience or because they use the same resources.
Foundation of horizontal differentiation
Advantages of functional structure - Answers -✔✔ - Learning from each other
- Higher specialization/production
- Supervision and controlling of one another (peer supervision), especially for complex
tasks
- Higher effectiveness, through development of equal norms and values (higher
commitment)
Control problems in a functional structure - Answers -✔✔ - Communication problems
(subunit orientation)
- Measurement problems (contribution of each function per product)
- Location problems (difficulty to control)
- Customer problems (difficulty to satisfy each customer and product)
- Strategic problems (focus on everyday coordination problems rather than long-term
strategy, resulting in loss of direction)
Solving control problems in a functional structure - Answers -✔✔ Through
differentiation, this as a result increases control
Divisional structure - Answers -✔✔ Groups functions according to the specific
demands of products, markets or customers.
From functional to divisional to increase control
Three types of divisional structures - Answers -✔✔ - Product structure
- Geographic structure
- Market structure
Product structure 1: Product structure - Answers -✔✔ Divisional structure where
products are grouped into seperate divisions
An organization can either use their support functions for all product divisions or divide it
per product division (product division structure or multidivisional structure). This decision
is based on the degree of complexity of the product.
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