ODB Chapter 6

These are the advantages of having functional structures, except:

• Opportunity to learn from one another

• Supervise one another

• The best of serving customer

• Develop norms & values toward work

These are the disadvantages of having functional structures, except:

• Good communication

• Good measurement

• Good strategy

• Good norms

This is not the type of divisional structure

• Functional structure

• Product structure

• Geographic structure

• Market structure

These are the advantages of divisional structures, except:

• Increase control

• Increase effectiveness

• Internal labor market

• Coordination between divisions

These are the disadvantages of divisional structures, except:

• Increase control

• Managing corporate-divisional relationship

• Transfer pricing

• Bureaucratic costs

Hybrid structure is under the classification of...

• Functional structure

• Divisional structure

• Matrix structure

• Network structure

These are the advantages of matrix structures, except:

• Reduce functional barriers

• Promotes concern for cost & quality

• Open up communication

• Conflict over the use of resources

These are the disadvantages of matrix structures:

• Problems with power & control

• Use the skills of its specialized employees

• Open up communication

• Lack of bureaucratic structure

These are the advantages of network structures:

• Finding new partner that can perform specifically & reliably

• Avoid high bureaucratic cost

• Act in organic way

• Low-cost overseas sources of inputs & expertise

These are the disadvantages of network structures:

• Finding new partner that can perform specifically & reliably

• Lack of coordination & integration

• Act in organic way

• Not suitable for more complex value-creation activities