Question

What are the advantages and disadvantages of using a functional structure?

Could a matrix structure be used across a large corporate organization? Why or why not?

What factors could determine the appropriate span of a manger's control?

What are the corporate office's key concerns in creating and implementing strategy? Why?

Answer 1

1.What are the advantages and disadvantages of using a functional structure?
ADVANTAGE
a.higher level of expertise and potential for achieving economies of scale (standardization)

b.Organized

c.Facilitates specialization

d.Improves operational efficiency

DISADVANTAGES

a.poor coordination and communication among units (silos)

b.mismatched professional established guidelines

c.delay transfer of information

d.Focuses on department, not organization

e.No generalists (Specialized in only one field)

f.Top managers held accountable for profitability

2.Could a matrix structure be used across a large corporate organization? Why or why not?

Yes, as healthcare transitions towards coordination of care rather than episodic treatment of illness, matrix arrangements may promote cooperative behavior among the many providers and producers of healthcare.

3.What factors could determine the appropriate span of a manager's control?
a.layers of management
b.communication
c.not more than 7 or 8 employeesteam-based management, customer satisfaction, rapid decision making, large size, use of IT, trust, complexity, job types, geographical presence.

4.What are the corporate office's key concerns in creating and implementing strategy? Why?
a.allocate capital across business units
b.deciding which businesses to compete in
c.determining how to integrate and manage those business.