d. Teams a. Scalar principle This structure is organized by departments and expertise areas, such as R&D (research & development), production, accounting, and human resources. e. product. The CEO's direct supervisors include VPs for the North American South American, European, and the Asian divisions. e. There is no competition for corporate resources. The traditional organizational structure is best suited to small businesses that, again, comprise a fairly small number of departments and a limited number of employees. &2013& \text{Cash} & 49.4 & 68.0 & 91.7 & 80.4 & 83.6\\ The organizational structure often shows the chain of command and how information moves within the company. b. horizontal matrix c. e-engineering Finding the most appropriate organizational structure for a business depends on a number of factors. & Davis, R. (1984). It's not uncommon for a group to start with a steering committee, ask others to serve as board members, and then recruit volunteers who will serve as members of action committees. \text{Cash from Financing Activities} & (5.2) & (5.2) & 68.1 & 20.1 & (5.6)\\ It might make it difficult for employees to understand their place in the organization. d. virtual network Employees want to understand their job responsibilities, whom they report to, what decisions they can and should make and how they interact with other people and teams within the company. An organizational structure allows companies to shape their business model according to several criteria (like products, segments, geography, and so on) that would enable information to flow through the organizational layers for better decision-making, cultural development, and goal alignment across employees, managers, and executives. Indeed, as startups become established organizations, they might need to become way more structured as they have to tackle much broader engineering, administrative, legal, marketing, and sales problems. But each task force is contributing to that mission in vastly different ways, with different objectives, and using different strategies. e. teams, networks. a. The line of authority Narrow The Forbes Advisor editorial team is independent and objective. a. delegation c. reengineering a. high concern for customers' needs. \text{Shares outstanding (millions)} & 56.8 & 56.8 & 56.8 & 56.8 & 56.8\\ e. process. It also has the potential for a lack of cross-department communication and collaboration. As a project manager, you learn that the stakeholders are changing the nature of the project and the teams deliverables will change as a result. a. Vertically a. work specialization When assigning tasks to team members, what two factors should you mainly consider? This process is known as: How the organization's identity and personality is demonstrated The ability of a corporation's management team to meet earnings . The first element of structure is governance - some person or group has to make the decisions within the organization. b. b. the project; people This is called _____. Work performed by subordinates is stable and routine. Valuation metrics A functional structure facilitates specialization, scalability and accountability. You might be using an unsupported or outdated browser. Select all that apply. Thus, in a sense, the organizational structure is critical for executing the overall business strategy. There are many benefits to creating an organizational structure that aligns with the companys operations, goals and objectives. Pellentesque dapibus efficitur laoreet. All information starts at the top and is passed down, typically from one individual to the next. In part, thats because large corporations are extremely well aligned with their key customers. Access to over 100 million course-specific study resources, 24/7 help from Expert Tutors on 140+ subjects, Full access to over 1 million Textbook Solutions. a. functional structure. How might the person in this role contribute to the organization's mission? a. functional d. the power imbalance that can result between the sides of the matrix. Which of the following typically is NOT considered a staff department? Lorem ipsum dolor sit amet, consectetur adipiscing elit. Culture mapping b. vertical functional Prepare Wilcos December 31, 2012, stockholders equity section. Discover your next role with the interactive map. A matrix structure describes an organization that has multiple reporting lines of authority. Traditional A traditional line organizational structure is truly the place to start for most companies, especially the smaller ones that don't necessarily comprise a vast number of departments or require a major number of links in the chain of command/communication. The next tier or link in the chain is a director. \text{Accounts Payable} & 18.8 & 18.8 & 22.4 & 27.1 & 30.3\\ It follows a traditional, top-down reporting structure with a clear chain of command. d. evaluate and reward performance. From that perspective, organizational structure helps address a broader scaling level for companies. This kind of structure can benefit companies that have several product lines or markets, but it can be challenging to scale. Unity of command a. virtual network A hierarchical organization structure is the pyramid-shaped organization chart many people are used to seeing. There is, of course, a primary leader the director. Which of the following titles best describes her position? From a broad perspective, it appears very similar to the product-based structure above. What is the benchmark salary for people performing this project role? a. Greater work specialization How members of an organization are compensated. a. functional b. line authority e. finances; products, Which of the following is not an approach to structural design that reflects different uses of the chain of command? a. Reengineering Inherent in any organizational structure also is a distribution of work. Louise works in the manufacturing department at Ice Sculptures. Staff Organizations using functional structures group jobs based on similarity in functions. a. b. fast response, flexibility in an unstable environment. d. high degree of centralization. In this broad spectrum of possibilities, consider: Where does your organization fit in? Which answer best describes a Matrix organizational structure? d. has excellent coordination across departments. d. uses product-based structure. Jacob was recently looking at his company's organization chart in an attempt to discover who reports to whom. e. division of labor. Subordinates accept it. b. amount of differentiation. d. A horizontal structure How job tasks are divided and coordinated A company's income and expenses d. Division of labor Finance department d. strategic planning We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. c. flexible. \text{Paid-in capital in excess of par-common stock} & 1,320,000\\ Based on the organizational structure the company will also have a different shape. New York, NY: Praeger. d. BCG approach a. service b. excellent coordination between functions. b. mass production 1 point b. Divisional As a project manager, youre trying to take all the right steps to prepare for the project. How To Find The Cheapest Travel Insurance, 4 Common Types of Organizational Structures, How To Choose the Best Organizational Structure, Best Enterprise Learning Management Systems, SurePayroll Review: Plans, Pricing And Features, Departments or teams within the organization. a. it generates a large amount of conflict. e. narrow span of management. c. A divisional structure Select all that apply. Structural development can occur in proportion to other work the organization is doing, so that it does not crowd out that work. \underline{\text{Income Tax}} & (8.1) & (2.3) & (5.1) & (6.4) & (8.7)\\ It refers to how a company is arranged, how job tasks are divided and coordinated, and how members of the organization relate to one another. The matrix structure violates which of the following principles of management? Although it can be challenging to know who has ultimate decision-making authority, it can also foster a positive company culture because employees dont feel like they have superiors. This structure can also be more cost-efficient because it reduces the need for middle managers. To help support our reporting work, and to continue our ability to provide this content for free to our readers, we receive compensation from the companies that advertise on the Forbes Advisor site. c. Centralization; top e. A virtual network structure, All functions in a specific country or region report to the same division manager in _____ divisions. Course Hero is not sponsored or endorsed by any college or university. As project manager, you approve a team members request to change the order of their tasks because they think it will be more efficient. Which of the following best describes organizational structure? \text{Total Liabilities} & 525.3 & 524 & 602.1 & 632.3 & 637.2\\ c. divisional Nam risus ante, dapibus a molestie consequat, ultrices ac magna. It is likely structured: a. Scalar principle b. tangible output. c. Work specialization Where the organizational structure and design are critical to building a culture congenial to the companys long-term vision and mission. \text{Statement of Cash Flows} & 2012 & 2013 & 2014 & 2015 & 2016\\ Tesla, What Is The Organizational Structure of McDonald's?, What is Walmarts Organizational Structure? d. divisional e. give thorough instruction. d. mechanistic, rigid \text{Vertical Analysis of Income Statement for the Months Ending}\\ a. a standing b. Sporadically \text{Cash from Operations} & 45.2 & 47.6 & 53.1 & 44.0 & 48.8\\ Select all that apply. Your team develops software that meets the success criteria presented to you by your company's CFO. 1. &\text{Cost of beginning inventory}\\ c. it works well in a changing environment. Fill in the blank: During the planning phase of a project, you take steps that help you _____ to achieve your project goals. a. An example is Googles early days, a flat organization with functional teams organized around projects. b. 1)A process by which Cooper centralizes decision-making by its top managers so that excessive spending can be identified, 2)A process by which Cooper creates economies of scale and scope by pursuing rapid growth initiatives, 3)A process by which Cooper standardizes capabilities across all business units and assures that high quality standards are met, 4)A process by which Cooper finds synergy with existing business units and improves operational efficiency, Explore over 16 million step-by-step answers from our library, m risus ants a molestie consequat, ultrices ac magna. Service production Typically organizational structure can be categorized based on several parameters and priorities. Your company is restructuring and you have been chosen to manage a key project. Many of these rules may be explicitly stated, while others may be implicit and unstated, though not necessarily any less powerful. a. Centralization; bottom A board of directors has been invaluable in helping keep the coalition financially viable. How changes are implemented within the organization The debate over centralization vs. decentralization is still open. 1 point & 1.7 & (1.3) & 4.8 & 4.9 & 4.9\\ c. centralized at the top. b. a permanent \text{Pretax Income} & 23.1 & 6.6 & 14.7 & 18.2 & 24.9\\ What step could the company have taken to avoid scope creep? Tick Tock, Inc. has a _____ structure. All of the following are advantages of a divisional structure EXCEPT: b. matrix structure. d. A temporary committee a. people; the project A company's schedule and plans Fill in the blank: During the planning phase of a project, you take steps that help you _____ to achieve your project goals. Donec aliquet. c. Manufacturing e. results in an efficient use of resources. b. Commonstock,$5parvalue$510,000Treasurystock90,000Retainedearnings2,340,000Paid-incapitalinexcessofpar-commonstock1,320,000\begin{array}{lr} b. reengineering c. Kevin's span of management can be larger than Nichole's. It breaks a company up into groups based upon the projects it needs to complete. That is why its important to have innovation units or small teams of people that operate independently and are not necessarily aligned with the overall organizations goal and vision. b. degree of formalization. e. Rules and procedures defining task activities are available. Developing Multisector Task Forces or Action Committees for the Initiative, Section 4. In a decentralized organization, companies try to remain more agile and flexible via nonlinear information flows, where multiple touchpoints allow information to travel across several parts of the organization. right to left and top to bottom. With the traditional structure, individual employees communicate directly with their immediate supervisors. For example, an employee who specializes in a particular product might have both the functional reporting line and a geographic reporting line. e. career progress within functional departments. All Rights Reserved. After narrowing down the options, create a visual that represents the structures the company is considering. e. functional approach, The _____ is an organization structure that divides the major functions of the organization into separate companies and coordinates their activities from a small headquarters organization. a. department manager a. matrix This structure has centralized leadership and the vertical, hierarchical structure has clearly defined . e. Divisional approach. a. e. team-based, virtual network, Flash Card Inc. recently underwent a significant company-wide change that involved revision of its manufacturing and leadership processes. Increased barriers among departments Kevin's subordinates are highly trained and all perform similar tasks. e. flexibility in an unstable environment. The Tool Box needs your help Organizational culture. It is vested in people, not positions. c. A functional structure The team approach to departmentalization is a response to: We'd love to hear from you, please enter your comments. It affects the client's criteria for success. Resource availability Salta Communications is a global telecommunications company that has operations on four continents. Which of the following best describes organizational structure? b. \text{Accrued Compensation} & 7.6 & 6.3 & 7.5 & 7.7 & 9.4\\ a. decentralized. e. loose organizational structure or an organic structure, Which of the following is an incorrect fit in a stable organizational environment? Developing an Ongoing Board of Directors, Section 5. As someone interviewing for a project management role, you want to understand the organizational culture of the company you're interviewing with. Gennaro is the creator of FourWeekMBA, which reached about four million business people, comprising C-level executives, investors, analysts, product managers, and aspiring digital entrepreneurs in 2022 alone | He is also Director of Sales for a high-tech scaleup in the AI Industry | In 2012, Gennaro earned an International MBA with emphasis on Corporate Finance and Business Strategy. b. modular Once you have that information, narrow down the options to the top two or three organizational structures that are most likely to be the best fit for the company. 1 point c. Large-batch production & 244.3 & 243.3 & 306.1 & 349.6 & 347.9\\ d. accountability This article describes the various types of organizational structures, the benefits of creating one for your business and specific elements that should be included. Which is an advantage of the divisional structure? e. Span of management, Rebecca works for a company that has clearly defined lines of authority. We and our partners use cookies to Store and/or access information on a device. Choosing the kind of structure of your organization is very important, as based on that your company will be able to achieve a long-term objective, create a culture that fits those goals and it makes employees happy and efficient. As someone interviewing for a project management role, you ask questions about how team members provide feedback to one another, ways the company celebrates success, and whether risk-taking is encouraged. b. Organic structure The Structured Query Language (SQL) comprises several different data types that allow it to store different types of information What is Structured Query Language (SQL)? The functional type of organizational structure is ideal for larger companies with a lot of departments and for companies that need to meet short timeframe deadlines. c. Primary; functional Jacob is studying his organization's: How are decisions made, majority vote or top down approvals? An organizational structure is literally a chart or diagram that depicts the logistical organization of a company. A functional structure A functionalor role-basedstructure is one of the most common organizational structures. Direction and communication start with the head of the company (in this example, the company is led by the chief executive officer). a. Disadvantages of the virtual network approach include: Compared to YZ, Jacob's company has what type of organizational structure? e. controlling, A task force is _____ committee(s) formed to solve a specific problem. This is the individual (or office) that oversees a department or segment of the company. In diagram form, a complex organization might look like this: As smaller size means fewer people, these groups are usually less complex, as they have less need for a formal hierarchy and instead have governance that is consensus-based. a. virtual network Line; staff Study with Quizlet and memorize flashcards containing terms like Which of the following refers to the deployment of organizational resources to achieve strategic goals? 1 point The pure functional structure does not enable the organization to be: _____ means that decision authority is located near the _____ of the organization. c. Traditional divisions And it can occur in parallel with, at the same time as, your organization's growing accomplishments, so they take place in tandem, side by side. The startup culture has introduced flatter organization patterns. In business, what is the management framework within which decisions are made and accountability is determined? Typically this kind of organization is very bureaucraticand has a top-down approach. d. high quality technical problem solving. a. encourages decentralization. However, this change disrupts another team members work process: they need to do two additional tasks not related to the projects goal. Project managers should follow which three best practices when assigning tasks to complete milestones? Commonstock,$5parvalueTreasurystockRetainedearningsPaid-incapitalinexcessofpar-commonstock$510,00090,0002,340,0001,320,000. For example, the task force on domestic violence mentioned above has the following action committees: Although this list is pretty extensive, your organization may only use two or three of the above mentioned roles, especially at the beginning. b. Centralization c. large-batch production A tight structure Similar to the functional structure, the process-based structure is structured in a way that follows a products or services life cycle. Extend the income statement for Miss Muffins' Bakery to include a vertical analysis for 201220122012 and for 201320132013. d. seven d. flexibility. An organization's external environment is also referred to as the general environment. e. all of these. Which of the following departments for Carly's Clothes can be considered a line department? c. virtual organization d. Formalization d. In a circular fashion If applicable, include resumes and scope of work for consultants that The work in Louise's department is low in task specialization. d. Kevin has more problems with work specialization. When departments are grouped together on the basis of organizational outputs, the organization is using a: Also how far employees are from top management and how freely the information flows. Which of the following terms best describes the first step to your project having the desired impact once it goes live? Salta can best be described as using what organizational structure? a. a cost leader. 1 point The organizational structure becomes critical when trying to achieve a broader scale. a. Departmentalization Which of the following structures is the leanest of all organization forms because little supervision is required? b. planning e. None of these, Change and uncertainty in the environment are usually associated with _____. e. uses a matrix structure. d. The management chain She has written legal and marketing content and communications for a wide range of law firms for more than 15 years. b. Team-based approach e. none of these, Which of the following leads to strong coordination across functional areas and greater flexibility in responding to changes in the environments? b. Decentralization; top This structure is more flexible to the hierarchical organization, as each division will run almost as an independent business, that has independent control over resources and money spent. Which part of a company's culture do these questions help you learn more about? Please try again later. Mountain Peak can be said to have: Wherein a centralized organization the information flows from the top to the bottom of the organization linearly. Organizational structure is something that is best decided upon internally, through a process of critical thinking and discussion by members of the group. a. resulting economies of scale. c. The chain of command \text{July 31, 2012 and July 31, 2013}\end{array} e. Authority is static - it does not flow, The people with authority and responsibility are subject to reporting and justifying task outcomes to those above them in the chain of command. a. division of labor. The four main types of organizational structures can be divided into functional, divisional, matrix, and flatarchy. b. efficient. The geographical structure is a good option for companies with a broad geographic footprint in an industry where it is essential to be close to their customers and suppliers. e. process-based, A formal chain of command for both functional and divisional relationships is provided by the _____ approach to structure. Gina wishes to transfer authority and responsibility to her subordinates. As discussed below, functional, product-based, market-based and geographical organizational structures are vertical structures. \text{Common stock, \$5 par value} & \$\hspace{10pt}510,000\\ e. Identical, The functional, _____, and _____ are traditional approaches that rely on the chain of command to define departmental groupings and reporting relationships along the hierarchy. While this kind of approach might work well with small and medium-sized organizations, it might be difficult to implement for quite large organizations. \text{Chg. in Inventory} & (2.9) & 1.3 & 4.9 & (2.9) & (5.6)\\ d. small-batch production 1 point c. authority However, the organizational structure can be complex, so it can cause confusion about accountability and communication, especially among new employees. c. divisional structure. In fact, a large organization has to keep its operations as efficient as possible to keep its operations make sense. b. Organization A with eleven hierarchical levels Select all that apply. Organizational design is a critical puzzle for making a company successful. e. None of these. b. \end{array} a. Creating and Gathering a Group to Guide Your Initiative, Section 3. e. both lack of participative teams and centralized decision-making. 1 point Which of the following is(are) an advantage of team structure? As a project manager, you believe limited access to the necessary people and equipment could cause the project to go past deadline. Those startups managed to build products much faster, with much less politicized, an iterative approach to growth, thus disrupting the incumbents. What steps should you take? b. team based, horizontal To prepare for the adoption of your recommended changes and to gather information, you incorporate surveys, flowcharts, and culture mapping. e. matrix structure. c. matrix The span of management c. easy pinpointing of responsibility for product problems. d. Small-batch production c. authority and responsibility in top management's hands. d. leading c. vertical, team based b. matrix a. horizontal, vertical b. Nichole will have problems with unity of command. You expect that a project will bring in $15,000 USD in revenue per year. Conversely, with a decentralized organizational structure, teams have more autonomy to make decisions and there may be cross-collaboration between groups. It's the operating manual that tells members how the organization is put together and how it works. The result of this was a stronger emphasis on horizontal coordination.