MGMT 466 - Chapter 11 - Organizational Structure and Controls

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

Provides capacity the firm requries to consistently and predictably manage its daily work routines

Provides the opportunity to explore competitive possibilities and then allocate resources to activities that will shape the CA the firm will need to be successful in the future; exploit current CA while developing new ones to be used in future

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; supported by both strategic and financial contorls

Largely subjective criteria intended to verify that the firm is using appropriate strategies for the conditions in the external environment and the company's CA

Largely objective criteria used to measure the firm's performance against previously established quantitative standards

Simple structure -> sales growth (coordination and control problems) -> functional structure -> sales growth -> multidivisional structure

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

Consists of a chief executive officer and a limited corporate staff, with functional line managers in dominant organizational areas such as production, acct, mktg, R&D, engineering, and HR

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 day-to-day operations and business-unit strategy to division managers