Organizational Structure (12:30-2)

The process of creating, implementing, monitoring, and modifying the structure, processes, and procedures of an organization

• Organizational Structure

• Strategy Implementation

• Organizational Design

• Organizational Controls

It includes the policies and processes that companies implement to ensure that their resources are properly monitored, directed, and measured.

• Strategic Control

• Financial Control

• Cost Control

• Output Control

All are true about simple structure except:

• For the small firm

• Low work specialization

• Flat hierarchy

• Decentralized authority

Functional structure consists of people with similar work specialties which are grouped together in formal groups.

• True

• False

Important in determining the quality of goods and services since it gives managers feedback on product quality

• Strategic control

• Financial control

• Quality control

• Organizational control

In cost leadership strategy, ____ culture is likely to emerge.

• development-oriented

• low-cost

Which of the following is not a characteristic of a functional structure in cost leadership strategy?

• efficient processes

• highly specialized jobs

• decentralized authority

• simple and easy to manufacture product design

In differentiation strategy, the organizational structure of the firm highlights marketing and process R&D.

• true

• false

A ______ structure is an organizational structure in which there is a dual structure combining both functional specialization and product or project specialization.

• simple

• functional

• multidivisional

• matrix

All of the following are important structural characteristics except

• cooperation

• formalization

• specialization

• Centralization