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Organiza onal Structure - Ans How jobs and tasks are divided and coordinated between
individuals and groups within the company, an outcome of design
Organiza onal Design - Ans a process or style used by management to arrange the
components of structure
Func onal Structure - Ans func onal departmentaliza on and high centraliza on.
•very efficient
•tend to be inflexible and insensi ve to subtle
differences across products, regions, or clients •most appropriate in stable, predictable
environments
President --- VP Finance, VP Marke ng, VP R&D
Divisional Structure - Ans workflow departmentaliza on and low levels of
centraliza on.
•not very efficient
•tend to be more flexible and innova ve
•tend to be sensi ve to subtle differences across
products, regions, or clients
Product Structure
President -- VP Electronics (Finance, Marke ng R&D) , VP Home furnishings (Finance, Marke ng
R&D), VP Automo ve (Finance, Marke ng R&D)
, Client Based Structure
President -- VP Direct Sales (Finance, Marke ng R&D) , VP Internet Sales (Finance, Marke ng
R&D), VP Large Vendor Contracts (Finance, Marke ng R&D)
Geographic Structure
Assume our company, HRM Suppliers, sells 2 dis nct product lines, bombs and baby formula.
What type of structural configura on would be most appropriate, a divisional or func onal
structure? Why? - Ans Func onal Structure
What is organiza onal design impacted by? - Ans Business Environment
•Consists of customers, compe tors, suppliers, distributors, and other factors external to the
firm
•Global Presence
Company Strategy
•Low-Cost vs. Product Differen a on
Company Size
•As companies become larger, they need to rely on some combina on of specializa on,
formaliza on, and centraliza on to control ac vi es
Mul na onal Enterprise Organiza onal Design Challenges - Ans Integra on; local
responsiveness problem...coordina ng and balancing the opposing forces of integra ng their
foreign opera on