Use of multidivisional structure avoids duplication of organizational activities.
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Organizational Theory, Design, and Change, 7e (Jones)Chapter 6 Designing Organizational Structure: Specialization and Coordination1) A divisional structure is a design that groups people into separate functions or departments ecause the! share common s"ills and e#pertise ecause the! ma"e use of the same resources$Ans%er: &A'Sage *ef: 1+,Difficult!: as!'O: 6-1.) &unctional structure is the foundation of horizontal differentiation$ Ans%er: /*0age *ef: 1+,Difficult!: as!'O: 6-1) &unctional structure provides people %ith the opportunit! to learn from one another and ecome more specialized and productive$Ans%er: /*0age *ef: 123Difficult!: as!'O: 6-1+) As an organization %ith a functional structure gro%s4 the cost of each function5s contriution to the development of each product ecomes increasingl! simple to measure$Ans%er: &A'Sage *ef: 121Difficult!: as!'O: 6-12) Servicing the needs of ne% "inds of customer groups and tailoring products to suit them are relativel! simple in a functional structure$ Ans%er: &A'Sage *ef: 121Difficult!: as!'O: 6-16) /he higher the level of differentiation4 the more comple# the integrating mechanisms that managers need to use to control organizational activities$ Ans%er: /*0age *ef: 12Difficult!: as!'O: 6-1 1
) A functional structure groups functions according to the specific demands of products4 mar"ets4 or customers$ Ans%er: &A'Sage *ef: 12+Difficult!: as!'O: 6-.,) 7n a product division structure4 a centralized set of support functions services the needs of a numer of different product lines$ Ans%er: /*0age *ef: 12+Difficult!: as!'O: 6-.8) /he structure that organizations most commonl! adopt to solve the control prolems that result from producing man! different "inds of products in man! different locations for man! different t!pes of customers is the divisional structure$Ans%er: /*0age *ef: 12+Difficult!: as!'O: 6-.13) /he goal ehind the change to a divisional structure is to create smaller4 more manageale suunits %ithin an organization$ Ans%er: /*0age *ef: 12+Difficult!: as!'O: 6-.11) As an organization increases the "inds of goods it manufactures or the services it provides4 a functional structure ecomes more effective at coordinating tas" activities$Ans%er: &A'Sage *ef: 12+Difficult!: as!'O: 6-.1.) A functional structure has greater vertical and horizontal differentiation than a divisional structure and emplo!s more comple# integrating mechanisms$Ans%er: &A'Sage *ef: 12+Difficult!: 9oderate'O: 6-. .
1) A product structure is a t!pe of a functional structure$Ans%er: &A'Sage *ef: 12+Difficult!: as!'O: 6-.1+) 7n a multidivisional structure4 each division is independent and self-contained$ Ans%er: /*0age *ef: 12Difficult!: as!'O: 6-.12) A multidivisional structure is characterized ! a corporate headuarters staff %hich is composed of corporate managers %ho are responsile for overseeing the activities of the divisional managers heading up the different divisions$Ans%er: /*0age *ef: 12Difficult!: as!'O: 6-.16) 9ost &ortune 233 companies use a functional structure ecause it allo%s them to gro% and e#pand their operations %hile maintaining control over their activities$Ans%er: &A'Sage *ef: 12Difficult!: as!'O: 6-.1) 7n a multidivisional structure4 corporate headuarters can identif! the divisions in %hich an investment of capital %ill !ield the highest returns$Ans%er: /*0age *ef: 163Difficult!: as!'O: 6-.1,) 0se of multidivisional structure avoids duplication of organizational activities$Ans%er: &A'Sage *ef: 161Difficult!: 9oderate'O: 6-.18) 9ultidivisional structures tend to e the tallest of all organizational structures$Ans%er: /*0age *ef: 161Difficult!: as!'O: 6-. Reward Your CuriosityEverything you want to read. Anytime. Anywhere. Any device. No Commitment. Cancel anytime. Share this documentShare or Embed DocumentSharing Options
Home Books Audiobooks Documents What are the benefits of a multidivisional structure?A big advantage of a multidivisional structure is that it allows a firm to act quickly. When GE makes a strategic move such as acquiring the well-support division of John Wood Group PLC, only the relevant division (in this case, Energy) needs to be involved in integrating the new unit into GE's hierarchy.
What is a multidivisional organizational structure?Multi-divisional form (also known as M-form or MDF) refers to an organizational structure by which the firm is separated into several semi autonomous units which are guided and controlled by (financial) targets from the center.
What is the disadvantage of multidivisional structure?The disadvantages of the multidivisional organizational structure include the duplication of functions, or even rivalry between divisions, such as sales or manufacturing, which precludes the achievement of corporate-level economies of scale and increases operating costs.
Which departmentalization increases risk of duplication?Duplication of resources is one of the disadvantages of divisional departmentalization. The divisional departmentalization entails each department performing similar tasks so that each product and geographic area will have IT, finance, and marketing functions.
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