Exam 12: Implementing Strategy in Companies That Compete in a Single Industry
A division is a way of grouping functions to allow an organization to better produce and dispose of its goods and
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Identify and discuss the three building blocks of organizational structure.
Organizational structure assigns employees to specific value creation tasks and roles and specifies how these tasks and roles are to be linked together in a way that increases efficiency, quality, innovation, and responsiveness to customers D distinctive competencies that build competitive advantage.
The first building block of structure is grouping tasks, functions, and divisions.As companies grow, they may need to revisit structure so that these groupings are done to help create distinctive competencies.
The second building block is allocating authority and responsibility.As companies address authority and responsibility, the day-to-day structure takes shape.Decisions must address the hierarchy of authority, span of control, tall or flat structure, chain of command, and degree of centralization or decentralization.
The fmal building block of structure is integration and integrating mechanisms.The greater the complexity of an organization's structure, the greater is the need for coordination among the people, functions, and divisions to make the organizational structure work efficiently.Tools of integration include direct contact, liaison roles, and teams.
The process of deciding how a company should create, use, and combine organizational structure, control systems, and culture to pursue a business model successfully is referred to as:
Describe what is meant by the terms restructuring and reengineering, and discuss when and why they would be used.
Fortunately, whenever different functions work together, bureaucratic costs inevitably declines.
Control through organizational culture is so powerful because:
Eva Studio, an audio company, manufactures a wide range of sound systems such as noise-canceling headsets, loudspeakers, and amplifiers.Employees in EvaStudio are grouped such that each group works only on one type of sound system.Which of the following structures is EvaStudio is most likely to have employed?
An important purpose of control systems is to motivate employees to work toward increasing efficiency, quality,
innovation, and responsiveness to customers.
If a firm fmds that its functional structure is becoming too complex as the firm grows in size, the firm can tum to:
To a large degree, any organization's tasks are a function of its:
Essentially, centralization or decentralization are concepts that refer to the:
Research finds that centralization of authority is never advantageous, not even in time of crisis.
Flat structures can lead to information distortion when data are being sent either up or down the hierarchy.
For each function, a cost leader adopts output controls that allow it to monitor and evaluate functional performance closely.
Silica Dustcloud Inc.is a decentralized organization.This means that the organization promotes flexibility and reduces bureaucratic costs because lower-level managers are authorized to make on-the-spot decisions.
The reward system affects motivation, however, the type of organizational culture that develops in a company is primarily affected by the founder's values and not the reward system.
Organizations strive to control employees' behavior by linking systems to their control systems.
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