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Organisational Structure and HR Alignment Book Notes - CH6

The document discusses different types of organizational structures. It notes that a functional structure groups people by skills and is the basic structure that all organizations begin with. As organizations grow more complex, they may increase vertical differentiation, horizontal differentiation, or integration. There are three main types of product structures: product division structure for similar products using shared support; multidivisional structure for diverse products across industries; and product team structure with specialists grouped into product development teams. A matrix structure coordinates activities both vertically and horizontally. Hybrid and network structures also emerge for large, complex organizations.

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22 views

Organisational Structure and HR Alignment Book Notes - CH6

The document discusses different types of organizational structures. It notes that a functional structure groups people by skills and is the basic structure that all organizations begin with. As organizations grow more complex, they may increase vertical differentiation, horizontal differentiation, or integration. There are three main types of product structures: product division structure for similar products using shared support; multidivisional structure for diverse products across industries; and product team structure with specialists grouped into product development teams. A matrix structure coordinates activities both vertically and horizontally. Hybrid and network structures also emerge for large, complex organizations.

Uploaded by

uma sankar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Chapter 6 – Organization Structure

1. Which structure is called bedrock or foundation of horizontal structure.

a. Product Division Structure


b. Functional Structure
c. Multidivisional Structure
d. Product Team Structure

2. Functional structure is suitable for:

a. Organizations selling small type of similar products


b. Produces those products in one or a few locations
c. Sells them only to one major type of customer
d. All of the above

3. What design structure helps managers to regain control of their organization

a. An increase in vertical differentiation


b. An increase in horizontal differentiation
c. An increase in integration
d. All of the above

4. The goal to create divisional structure is to create smaller, more manageable subunits within an organization.

a. True
b. False
c. Can’t say

5. Which of these are types of Product Structure

a. Product Division Structure


b. Multidivisional structure
c. Product Team Structure
d. All of the above

6. Which one of these can be called Divisional structure

a. Product Structure
b. Geographic Structure
c. Market Structure
d. All of the above

7. An organization whose products are broadly similar and aimed at the same market will chose:

a. Centralised support services


b. Separate support services
c. None of the above
d. Both of the above

8. An organization whose products are very complex technologically or whose characteristics change rapidly
will chose:

a. Product Team Structure


b. Product Division Structure
c. Multidivisional Structure
9. Which one of this is NOT an advantage of multidivisional structure

a. Increased Organization Effectiveness


b. Increased Control
c. Profitable Growth
d. Reduced bureaucratic expense

10. In matrix structure team members are two boss employees as they report to product team manager and
functional manager.

a. True
b. False
c. Can’t Say

11. Matrix structure is chosen to faster product development and response to customers.

a. True
b. False
c. Can’t say

12. Matrix structure relies on

a. Minimal vertical control


b. Maximal horizontal control
c. None of the above
d. Both of the above

13. Outsourcing is the form of

a. Hybrid Structure
b. Multidivisional Matrix Structure
c. Network Structure
d. None of the above

Notes:

1. A functional structure is a design that groups people because they have similar skills or use the same
resources. Functional groups include finance, R&D, marketing, and engineering. All organizations begin as
functional structures.

2. The move to a more complex structure is based on three design choices: increasing vertical differentiation,
increasing horizontal differentiation, and increasing integration.

3. The three kinds of product structure are product division structure, multidivisional structure, and product team
structure.

4. Product division structure is used when an organization produces broadly similar products that use the same
set of support functions.

5. Multidivisional structures are available to organizations that are growing rapidly and producing a wide variety
of products or are entering totally different kinds of industries. In a multidivisional structure, each product
division is a self-contained division with the operating structure that best suits its needs.A central headquarters
staff is responsible for coordinating the activities of the divisions in the organization. When a lot of coordination
between divisions is required, a company can use a multidivisional matrix structure.

6. Hybrid structure: The structure of a large organization that has many divisions and simultaneously uses many
different types of organizational structure.

7. Product team structure : 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.

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