[Solution] Forms of Organization Design
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Author: Emily Carter
Forms of Organization Design
Organizations are highly varied in their design choices. However, four basic models—or combinations of two or more of these models—are useful starting points for describing most organization designs. The four basic models are the functional (U-form) design, conglomerate (H-form) design, divisional (M-form) design, and matrix design.
Functional (U-Form) Design
The functional design (also called U-form, for unitary) is based on functional departmentalization.
Advantages: The organization can staff all important positions with functional experts, and each functional area is well coordinated.
Disadvantages: Coordination among departments is usually the responsibility of top-level managers; this degree of centralization can be inefficient and is usually not feasible for larger organizations.
Select the correct response to each of the following questions.
Which of the following forms of organization design is represented by the above diagram?
- Conglomerate (H-form) design
- Functional (U-form) design
- Matrix design
- Multidivisional (M-form) design
View Explanation
The organization pictured has a multidivisional, or M-form, design. This structure is associated with the related diversification strategy. Each product line is placed in its own department, but coordination across related products occurs in functional departments (not shown here), such as marketing and purchasing, and at the top of the organization.
Which of the following forms of organization design is represented by the above diagram?
- Matrix design
- Functional (U-form) design
- Multidivisional (M-form) design
- Conglomerate (H-form) design
View Explanation
The organization pictured has a conglomerate, or H-form, design. This is common among holding companies that own businesses in unrelated areas. In this example, if multiple businesses operate in the semiconductors market, they are in one division together, but all businesses in the telecommunications market are in a different division.
Select the term that best completes the following sentence.
A high degree of flexibility, engaged employees who are constantly learning new skills, strong coordination across teams, and decentralized decision making are all strengths associated with the .
View Explanation
Collectively, these strengths are associated with the matrix design because it organizes people and resources simultaneously by functional expertise and significant projects.
