Designing Organizational Structure: Specialization and Coordination

14 important questions on Designing Organizational Structure: Specialization and Coordination

How do you call a structure in which functions are grouped together according to the specific demands of products, markets, or customers?

Divisional structure

How do you call a divisional structure in which products (goods or services) are grouped into separate divisions, according to their similarities or differences?

Product structure

How do you call a divisional structure in which a centralized set of support function services the needs of a number of different product lines?

Product division structure
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How do you call a division that has its own set of support functions and controls its own value-creation activities?

Self-contained division

How do you call corporate managers who are responsible for overseeing the activities of the divisional managers heading up the different divisions?

Corporate headquarters staff

What are the four advantages of an multidivisional structure?

  • Increased organizational effectiveness
  • Increased control
  • Profitable growth
  • Internal labor market

What are the five disadvantages of a multidivisional structure?

  • Managing the corporate-divisional relationship
  • Coordination problems between divisions
  • Transfer pricing
  • Bureaucratic costs
  • Communication problems

How do you call a divisional structure in which specialists from the support functions are combined into product development teams that specialize in the needs of a particular kind of product?

Product team structure

How do you call a divisional structure in which divisions are organized according to the requirements of the different locations in which an organization operates?

Geographic divisional structure

How do you call a structure in which people and resources are grouped in two ways simultaneously: by function and by project or product?

Matrix structure

How do you call employees who report to two superiors: the product team manager and the functional managers?

Two-boss employees

How do you call a structure that provides for more integration between corporate and divisional managers and between divisional managers?

Multidivisional matrix structure

How do you call the structure of a large organization that has many divisions and simultaneously uses many different types of organizational structure?

Hybrid structure

How do you call trade that takes place between organizations, and between organizations and customers, using IT and the internet?

E-commerce

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