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Ch-12_Disc Answers

Ch-12_Disc Answers

Q DISCUSSION Question: 1. What is the relationship among organizational structure, control systems, incentives, and culture? give some examples of when and under what conditions a mismatch among these components might arise. 2. What kind of structure best describes the way your (a) business school and (b) university operate? Why is the structure appropriate? Would another structure be better? 3. When would a company choose a matrix structure? What are the problems associated with managing this type of structure? How might these problems be mitigated? 4. What kind of structure, controls, incentives, and culture would you be likely to find in (a) a small manufacturing company based in a stable environment, (b) a high-tech company based in a rapidly changing market, and (c) a Big Four ac- counting firm? 5. When would a company decide to change from a functional to a multidivisional structure? 6. How would you design structure, controls, incentives, processes, and culture to encourage entrepreneurship in a large, established corporation? How might the desire to encourage entrepreneurship influence your hiring and management development strategy?

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The relationship among organizational structure, control systems, incentives, and culture is quite interdependent and direct in an organization. Rather, it can be said that the organizational culture at some level describes the organizational structure of the firm and vice versa. The culture is the manner in which the employees and the people of the firm are supposed to conduct themselves and it shows the underlying values of the organization. As far as control is concerned, there can be operational, management and strategic control that would be used in an organization so as to ensure that all the actions in the firm are executive and performed as desired in the interest of the firm. All the above mentioned elements should be in harmony so that the organization’s effectiveness is maximised.