Chapter 11: Organizational Structure And Controls

Front 1

Organizational Structure

Back 1

Specifies the firm's formal reporting relationships, procedures, controls, and authority and decision-making processes.

Front 2

Organizational Controls

Back 2

Guide the use of strategy, indicate how to compare actual results with expected results, and suggest corrective actions to take when the difference is unacceptable.

Front 3

Strategic Controls

Back 3

Are largely subjective criteria intended to verify that the firm is using appropriate strategies for the conditions in the external environment and the company's competitive advantages.

Front 4

Financial Controls

Back 4

Are largely objective criteria used to measure the firms performance against previously established quantitative standards.

Front 5

Simple Structure

Back 5

Is a structure in which the owner-manager makes all major decisions and monitors all activities while the staff serves as an extension of the manager's supervisory authority.

Front 6

Functional Structure

Back 6

Consists of a chief executive officer and a limited corporate staff, with functional line managers in dominate organizational areas such as production, accounting, marketing, R&D, engineering and human resources.

Front 7

Multidivisional Structure (M-form)

Back 7

Consists of a corporate office and operating divisions, each operating division representing a separate business or profit center in which the top corporate officer delegates responsibilities for the day-to-day operations and business-unit strategy to division managers.

Front 8

Cooperative Form

Back 8

M-Form structure in which horizontal integration is used to bring about interdivisional cooperation.

Front 9

Strategic Business Unit Form (SBU)

Back 9

M-Form consisting of three levels: corporate headquarters, strategic business units(SBU's) and SBU divisions.

Front 10

Competitive Form

Back 10

An M-Form structure characterized by complete independence among the firm's divisions which compete for corporate resources.

Front 11

Worldwide Geographic area Structure

Back 11

Emphasizing national interests and facilitates the firm's efforts to satisfy local differences.

Front 12

Worldwide Product Divisional Structure

Back 12

Decision-making authority is centralized in the worldwide division headquarters to coordinate and integrate decisions and actions among divisional business units.

Front 13

Combination Structure

Back 13

A structure drawing characteristics and mechanisms from both the worldwide geographic area structure and the worldwide product divisional structure.