Identify and discuss the five organizational forms of Mintzberg's framework
What will be an ideal response?
Mintzberg has five designs with five elements common to all designs. Simple structure is small, informal, and with centralized decision-making. The strategic apex element dominates this form. Machine bureaucracy has a highly complex structure and formal climate with clear lines of authority. Work is highly specialized and it works in a stable environment. The technostructure element predominates. Professional bureaucracy consists of highly trained specialists. Complex decision-making and authority rests with the specialists, and it is dominated by the operating core element. Divisional structure is a large organization form where sets of autonomous units are coordinated by managers. The middle-line element is crucial here. Finally, the Adhocracy, another simple structure, is highly informal with decentralized authority. The support staff element is key here.
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James has been hired to fill a line position in an organization. This means that he will
A) have executive responsibilities, such as formulating corporate-level strategy. B) take responsibility for designing the messages in marketing campaigns. C) support shared-services units such as human resources and legal. D) be directly involved in producing or selling a product.
Which of the following is a danger in choosing a differentiation strategy?
A) Charging a price so high that the company prices itself out of the market B) Choosing a basis for price leadership that is essentially unimportant to the customer C) Choosing a market that is not large enough to be profitable D) An overfocus on overhead costs