Test Of Organization Structure

Multiple reporting relationships is a characteristic of a matrix structure in organizations. In a matrix structure, employees report to both a functional manager and a project or product manager. This allows for cross-functional collaboration and the efficient utilization of resources. The matrix structure is often used in complex organizations where different projects or products require input from various functional areas.

Divisions functioning as companies within companies can provide the advantage of smaller companies to larger companies. This means that each division can operate independently and focus on its specific product, geographical area, or customer group. This allows for specialization in employees, discourages internal competition, reduces duplication of work, and helps in realizing economies of scale. By functioning as separate entities, divisions can efficiently manage resources and make decisions that are best suited for their specific area, ultimately benefiting the larger organization as a whole.

Function Organizations are actually effective in small to mid sized organizations that work in relatively stable environment where they are part of homogeneous, local market.

A professional bureaucracy is the most commonly found structure in universities and hospitals. This structure is characterized by a high level of specialization and expertise, with professionals such as doctors, nurses, professors, and researchers working in their respective fields. It emphasizes the importance of professional qualifications and knowledge in decision-making processes. This structure allows for efficient coordination and control of complex tasks and ensures that the organization operates effectively and provides high-quality services.

Strategic Business Units (SBUs) are typically found in divisionalized organizations. Divisionalized organizations are characterized by the division of the company into smaller, self-contained units or divisions, each responsible for its own set of products, services, or markets. SBUs are created within these divisions to focus on specific products, markets, or customer groups, allowing for more effective strategic planning and decision-making. This structure enables the organization to adapt and respond to the unique needs and demands of different markets or customer segments.

The matrix organization suffers from the disadvantages of navel gazing, power struggle, and ambiguous responsibilities. Navel gazing refers to excessive self-reflection and focus on internal issues, which can hinder productivity and innovation. Power struggle occurs when there is a lack of clarity in authority and decision-making, leading to conflicts and delays. Ambiguous responsibilities arise when multiple individuals or departments are responsible for a task, causing confusion and accountability issues. Therefore, the correct answer is A, B, and C, as all these disadvantages are associated with the matrix organization.

Machine Bureaucracy is characterized by routine work, heavily standardized procedures, and repetitive tasks. In this type of organization, tasks are highly specialized, and decision-making authority is centralized. The focus is on efficiency and productivity, with little room for flexibility or innovation. This type of structure is commonly found in manufacturing industries or organizations that require strict control and coordination of operations.

In a matrix organization, the division of roles and responsibilities is of prime importance. This is because a matrix organization combines functional and project-based structures, leading to overlapping roles and multiple reporting lines. It is crucial to clearly define who should do what and under what conditions to avoid conflicts and power struggles. In a matrix organization, there is a need for clarity and coordination to prevent unnecessary conflicts of interest.

Mintzberg's five structures include Simple, Adhocracy, Machine Bureaucracy, Professional Bureaucracy, and Divisionalized Form. The term "Complex" is not mentioned as one of the types of organization structures according to Mintzberg's framework.

Adhocracy is the best structure for creative problem solving because it is a flexible and decentralized organizational structure that encourages innovation, creativity, and collaboration. Unlike other structures that have rigid hierarchies and standardized procedures, adhocracy allows for autonomy, experimentation, and adaptability. It promotes a culture of risk-taking, encourages employees to think outside the box, and fosters a dynamic and entrepreneurial environment. This structure is particularly suitable for organizations that require constant innovation and quick decision-making to solve complex and novel problems.