Organization design - ethan bernstein and nitin note on organization structure

6 important questions on Organization design - ethan bernstein and nitin note on organization structure

What are the key structural dimensions in an organization?

  • Hierarchy: Levels of authority and reporting relationships.
  • Centralization vs. Decentralization: Degree of decision-making power at the top vs. distributed across levels.
  • Formalization: The extent to which rules and procedures govern behaviors.
  • How does a divisional structure differ from a functional structure?

    It is organized by product, market, or geography rather than by function.

    What is a key disadvantage of the matrix structure?

    Complexity and potential conflicts due to dual reporting lines.
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    When is a network structure most effective?

    In dynamic environments requiring flexibility and external partnerships.

    How does strategy influence organizational structure?

    Structure should support business goals, e.g., innovation requires flexibility.

    Why do larger organizations tend to have more formal structures?

    To manage complexity and ensure consistency.

    The question on the page originate from the summary of the following study material:

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