ÖRGÜT KURAMI VE TASARIMI - Deneme Sınavı - 11

Options A, C, D, and E are the advantages of the M-form. the functional (unitary) form lowers costs by reducing duplication.

The M-form would hire potentially redundant specialists for each of its divisions, the matrix can more efficiently use its specialists to their full capacity. Only III is not about the matrix form.

An advantage of the form of business group is the headquarter does not need to achieve coordination between business units; it has to cope only with the bureaucratic costs that arise from the number of businesses in its portfolio. II, III, and IV are true about business groups.

In the stable network, a large core company creates market- based linkages to a limited set of partners. These networks are more popular in relatively mature industries such as the automobile, home appliance, and heating, ventilation, and air conditioning industries.

Dynamic networks are dominant in the industries where production cycle times are relatively short such as the movie, garment, and construction industries. Contrary to dynamic networks, in the stable network, a large core company creates market- based linkages to a limited set of partners. These networks are more popular in relatively mature industries such as the automobile, home appliance, and heating, ventilation, and air conditioning industries.

The mechanistic organization has a high degree of formalization, centralization, and specialization; tall hierarchy; bureaucratic control; and personal and/ or skill-based pay as the incentive system. The environments characterized by uncertaintyand rapid rates of change in market conditions or technologies require organic organizational designs. On the contrary, the environments characterized by relative stability necessitate mechanistic organizational designs.

In a larger organization, many routine decisions are pushed low levels of the organization, but there are some strict rules and procedures govern how those decisions are made. Thus, employees often have discretion, but can only exercise it within strict limits. Like the pure mechanistic design, it remains highly controlled, but it does so by being decentralized in such a way that allows lower-level employees to make all the programmed decisions while freeing managers to form policy and make unprogrammed choices.

Mediating technologies serve parties by bringing them together in an exchange or other transaction. Banks, online marketplaces, and social network companies all operate using mediating technology that links the participants by helping them locate one another and conduct their transactions, often without ever having to meet physically.

The machine bureaucracy is huge, typically mature, and is often oriented to mass production. The middle management area reflects the tall hierarchy for control. This form demostrates extensive formalization and specialization, with a primary goal of efficiency. This form is suitedto a simple, stable environment. Examples of machine bureaucracy are steel companies and large government organizations.

There are four basic types of incentive systems:

1. Personal pay, which is based on the individual compliance with rules or directives. Usually, personal pay-based systems take the form of a contract through which employee behavior is measured regarding people coming on at a particular time and then working for some hours.

2. Skill-based pay, which is based on merit, and is usually measured regarding formal education and seniority. It is the basis for payment in most organizations, whether private companies or public organizations.

3. Bonus-based incentives, which are based on individual performance, are rooted in a management-by-objectives philosophy. Goals, which are derived from the organizational goals, are set for employees, and rewards are distributed based on performance which is compared to preestablished targets or goals.

4. Profit sharing is based on giving both a fixed bonus and a share in the profits to the group (team, a division, department, or another subunit; it could also be the whole organization). People are rewarded by productive collaboration with others to yield high performance on the part of the group.

A function is a group of people, working together, who have similar skills or use the same kind of knowledge, tools, or techniques to perform their jobs. A functional form (U-from) consists of all the departments that an organization requires to produce its goods or services.

There are three advantages of the U-form. First, it allows high-degree of specialization. Second, it lowers costs by reducing duplication. Third, it eases communication and coordination for departmental managers.

At the same time, the possible difficulty of cross-department coordination, slow decision making, and narrowing the experience and expertise of the employees are some disadvantages of the U-form.

There are many advantages of the M-form. The M-form enables growing quickly; it provides better training for future executives; it offers enhanced responsiveness to the needs of customers; and it allows for accountability based on divisional profits. However, duplication and the challenge of coordinating across the different departments are the main disadvantages.

The primary disadvantage of the matrix form is the high level of coordination required to manage the complexity involved in running large, ongoing projects at various levels of completion. Matrix forms are infamous for confusion and conflict between project managers in different parts of the matrix. Disagreements or misunderstandings about schedules, budgets, available resources, and the availability of employees with particular functional expertise are common in matrix structures.

The business group achieves financial synergy, and the headquarter does not need to make coordination between business units; it has to cope only with the bureaucratic costs that arise from the number of businesses in its portfolio. The diversification discount is the main disadvantage of the business group if it operates in a developed country.

The network form combines legally separate companies along with a value chain into a loosely integrated whole. There are three types of a network form: The dynamic network includes independent companies along the value chain that form temporary alliances from among a large pool of potential partners. The stable network consists of a large core company that creates market-based linkages to a limited set of partners. The internal network is composed of commonly owned companies that allocate resources along the value chain using prices established in the open market.

Unit technologies produce one item or unit at a time or a few items all at once. Mass production technologies deliver high numbers of identical products using highly routinized and often mechanized procedures. The continuous processing is a series of non-discrete transformations occurring in a sequence. Mediating technologies serve parties by bringing them together in an exchange or other transaction. Intensive technologies necessitate coordinating the specialized abilities of two or more experts in the transformation of a usually unique input into a customized output.

To effectively implement a cost-leadership strategy, managers must create a U-form that contains the organizational elements of a mechanistic structure since all drivers of cost leadership strategy requires increased efficiency thus a high degree of centralization, formalization, specialization, and bureaucratic control

A configuration implies a multidimensional combination of work contingencies, design and performance elements that commonly occur together. However, rather than trying to explain how an organization is designed from its constituent elements, one-element-at-atime, a configuration perspective tends to focus on how a work system is designed from the interaction of its constituent elements taken together as a whole.

Control is a process through which management can initiate and regulate activities such that their results fit in with the goals and expectations held by management.