Exam 15: Organizational Structure

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The best organizational structure depends on the variety and analyzability of the tasks.

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For many years,Quokka Consumer Ltd has had a geographic divisionalized organizational structure.Now,the company is rethinking the appropriateness of this structure compared to other divisionalized structures.Describe the two other divisionalized structures that Quokka can consider adopting and give two explanations why Quokka might want to move away from the geographic structure.

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Job descriptions and training are examples of coordination through standardization.

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A divisionalized structure is recommended mainly for:

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Informal communication is a coordination mechanism only in small and a few medium-sized organizations.

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Simple structures usually rely on which of the following to coordinate work activities?

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As the number of employees increases,the organization tends to have:

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Today's educated and individualistic workforce is less tolerant of coordination through formal hierarchy.

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An organic structure works better than a mechanistic structure where tasks have high variety and low analyzability.

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Organizational structures are tools for change.

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Which form of departmentalization forms unique partnership teams that provide customized products or services,usually to specific clients,for a limited time?

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Peterborough Plastics Ltd markets a line of widgets designed and manufactured by other companies around the world.This is an example of which form of departmentalization?

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Decentralization is the preferred strategy for organizations in simple,integrated (one market)and hostile environments.

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A mechanistic organizational structure works better than an organic structure when:

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The idea that an organization interacts with its environment (rather than being totally determined by it)is summed up in the phrase:

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Organic structures are better suited to dynamic environments than to routine environments.

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In which of the four external environments would a network structure be effective?

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A widely accepted scholarly view of an organization's structure and its environment is that organizational decision makers can choose the environments in which they want to operate.

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One problem with a functional structure is that:

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Diversified Technologies,Inc.(DTI)makes four types of products,each type to be sold to different types of clients.For example,one product is sold exclusively to automobile repair shops,whereas another is used mainly in hospitals.Customer expectations and needs are surprisingly similar throughout the world.However,the company has separate marketing,product design,and manufacturing facilities in North America,Europe,Asia,and South America because,until recently,each jurisdiction had unique regulations governing the production and sales of these products.However,several governments have begun the process of deregulating the products that DTI designs and manufactures,and trade agreements have opened several markets to foreign-made products.Which form of departmentalization might be best for DTI if deregulation and trade agreements occur?

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