Because Functional Organization Structures Often Result in Pieces of Strategically

question 20

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's merit in using business process reengineering to pull the pieces of strategy-critical processes out of different departments and unify their performance in 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:

Computer Software

Programs and other operating information used by a computer to perform specific tasks.

Globalization

The process of interaction and integration among people, companies, and governments worldwide, influenced by trade, investment, and technology.

Risk Profile

An evaluation of an individual's or organization's willingness and capacity to take risks, as well as the potential loss that could result from those risks.

Down Sloping

Describes a trend or movement in a chart where indicators or values are moving downward over time.