Many small companies evolve into functionally based structures as they grow larger.
Many small companies naturally evolve into functionally based structures as they grow larger.
Trust: The willingness to be vulnerable to an authority based on positive expectations about the authority’s actions and intentions.
At LMNO Creating, employees are grouped according to their expertise in an area. All marketing employees are in one department, all finance employees are grouped in another department, and similarly, all human resources and manufacturing employees are in their respective departments. Which of the following structures does LMNO Creating use?
- client-based
- geographic
- functional
- product
- simple
The most basic of the bureaucratic structures is the functional structure. A functional structure groups employees by the functions they perform for the organization.
Functional Structure: An organizational form in which employees are grouped by the functions they perform for the organization.
Which of the following statements is True about functional organization structure?
- Small companies experiencing rapid growth are the only organizations to benefit from a functional structure.
- One of the main disadvantages of the functional structure is the lack of work specialization.
- Functional structures are extremely efficient when the organization as a whole has a relatively wide focus.
- One of the main advantages of the functional structure is that it encourages communication across functions.
- Functional structures are extremely efficient when the organization has fewer product lines or services.
Functional structures are extremely efficient when the organization as a whole has a relatively narrow focus, fewer product lines or services, and a stable environment.
Functional Structure: An organizational form in which employees are grouped by the functions they perform for the organization.
The biggest weakness of a functional structure is that
- it is not efficient when the organization as a whole has a relatively narrow focus.
- it is not efficient when the organization has fewer product lines or services.
- it cannot operate efficiently in a stable environment.
- employees do not communicate as well across functions as they do within functions.
- employee efficiency is decreased due to a high degree of work specialization.
The biggest weakness of a functional structure is that individuals within each function get so wrapped up in their own goals and viewpoints that they lose sight of the bigger organizational picture. In other words, employees do not communicate as well across functions as they do within functions.
Functional Structure: An organizational form in which employees are grouped by the functions they perform for the organization.
The most basic bureaucratic structure is the ________ structure.
- client-based
- matrix
- organic
- functional
- simple
The most basic of the bureaucratic structures is the functional structure. A functional structure groups employees by the functions they perform for the organization.
Katarina is the East Coast manager of Boots for You. Other managers are in charge of the West Coast, South, and Great Lakes divisions. Her brother, Jordan is a marketing manager at a different firm who enjoys watching sports with the finance and operations managers from his company. Katarina likely works in a company with a ________ structure, while Jordan most likely works in a company with a ________ structure.
- product; functional
- geographic; product
- product; client-based
- geographic; functional
- client-based; geographic
Katarina works in a geographically structured organization. Jordan works in a functionally structured organization.
Geographic Structure: An organizational form in which employees are grouped around the different locations where the company does business.
When Jolly Fingers Gloves, Inc., groups its business units according to where they do business-such as the North American division, the South American division, the Australian division, and the African division-it is creating which of the following organizational structures?
- client-based
- geographic
- functional
- product
- simple
Geographic structures are generally based around the different locations where the company does business.
Geographic Structure: An organizational form in which employees are grouped around the different locations where the company does business.
Lasting Skin Care Inc. is growing very fast in both sales and number of employees. It manufactures and sells skin products for youth, male, female, elderly, and ethnic populations all over the United States and several other countries. So far, the company has followed a simple structure. However, with fast-paced growth, it has become a necessity that the company explore other organizational structures. Larry, a long-time employee at Lasting Skin Care, has collected information on how some of its competitors have organized their companies. Tracks Inc. groups its employees by their different areas of expertise such as Marketing, Finance, Human Resources, and Operations. Fine Base, which is primarily in the United States, groups its activities as Northeast Division, Southeast Division, Northwest Division, Southwest Division, and Central Division. Prints Inc. has organized its employees according to the accounts they serve, such as Large Company Contracts, Internet Sales, Individual Sales, and Small Salon Direct Sales. Finally, Make safe International has grouped its business units around different types of makeup, including the Lipstick and Lip Gloss Division, the Eye shadow Division, the Foundation Division, the Mascara Division, and the Bronzer and Blush Division. Which of the following describes Fine Base's organizational structure?
- client-based
- geographic
- functional
- product
- matrix
Geographic structures are generally based around the different locations in which the company does business. The functions required to serve a business are placed under a manager who is in charge of a specific location.
Geographic Structure: An organizational form in which employees are grouped around the different locations where the company does business.
Which of the following statements is True?
- Wide spans of control tend to be associated with centralized decision making.
- Narrow spans of control tend to be associated with decentralized decision making.
- A high level of work specialization tends to bring about a high level of work formalization.
- Mechanistic organizations are typified by a structure that relies on low levels of work formalization.
- Organic organizations are typified by a structure that relies on high degrees of work specialization.
A high level of work specialization tends to bring about a high level of formalization.
Work Specialization: The degree to which tasks in an organization are divided into separate jobs.