Because Functional Organization Structures Often Result in Pieces of Strategically

question 92

Multiple Choice

Because functional organization structures often result in pieces of strategically relevant activities and capabilities being scattered across many different functional departments, companies have found that

• A)it is necessary to give these functional departments the freedom to collaborate closely with each other to achieve the desired degree of coordination.
• B)it is necessary to outsource those activities that are fragmented to strategic partners in order to achieve the needed coordination.
• C)there is merit in using business process reengineering to radically redesign and streamline strategy-critical processes and workflow from different departments and unifying their performance into a single department or cross-functional work group that has charge over the whole process.
• D)TQM is a potent way to reengineer the work effort, avoid the shortcomings of a functional organization structure, and achieve rapid-response capability.
• E)it makes good organizational sense to combine those functional departments where fragmentation is a problem into a single department.

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Definitions:

S Corporation

A specialized form of corporation in the United States that allows income to be passed through to shareholders for federal tax purposes, avoiding double taxation.

Profit Distributions

The sharing of earnings among the shareholders of a company, often in the form of dividends.

Involuntary Dissolution

The compulsory termination of a corporation or partnership by a court order, often due to failure to comply with legal requirements or insolvency.

Court Order

A formal statement issued by a court that requires a person or entity to do or refrain from doing something.