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:

Compounded Monthly

Interest calculation method where interest is added to the principal sum at the end of each month, and future interest is calculated on the new total.

Years

Units of time that represent the period it takes for the Earth to complete one full orbit around the sun, typically used to measure durations or ages.

Interest

The price paid for acquiring funds, often quoted as a yearly rate of the total amount borrowed.

Savings Account

A deposit account held at a financial institution that provides principal security and a modest interest rate.