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Homework answers / question archive / Organizational design case (Lead) Watch the following video about the Modern-Shed Company and use your knowledge of organizational design toanswer the questions that follow
Watch the following video about the Modern-Shed Company and use your knowledge of organizational design toanswer the questions that follow.
Modern-Shed has 12 to 14 knowledge workers who perform the company’s core activities from its Seattle office. Modern-Shed outsources other activities to external companies, which to do fabrication, help organize trade shows, and perform marketing duties. Modern-Shed has amodular organization
structure that allows it to:
Maintain the flexibility it needs to meet customer demands
Create a maximally efficient organization through work specialization
Coordinate work projects across functions and products
Maintain high levels of control over the way its products are sold and fabricated
Points:
1 / 1
Close Explanation
Explanation:
Modern-Shed is organized as a modular organization, which contains a small, central group of employees who contract the work of the organization (such as sales, marketing, and fabrication) to other organizations. Because Ryan doesn’t have financial responsibility for those other companies, he has the flexibility to outsource more when business is good and less when sales dip. In addition, the modular organization helps Ryan respond quickly to customer requests. If a customer wants a specialized product, Ryan can determine which outside contractor is best for that particular job. Work specialization and high levels of control are elements of a functional organization, whereas matrix structures coordinate work projects across functions and products.
Under what conditions is the current organizational structure of Modern-Shed most likely to be effective? Check all that apply.
When the economic environment is turbulent and uncertain
When following a differentiation strategy for the business
When following a low-cost leadership strategy for the business
In times of crisis, when everyone needs to follow a single leader
Points:
0.5 / 1
Close Explanation
Explanation:
Organic organizational structures, such as the modular organization used by Modern-Shed, are especially effective in uncertain environments because of the flexibility they create for the company. This flexibility is also used in responding to the unique customer requests that form a company’s core business when using a differentiation strategy. Functional organizations are more effective when producing large amounts of standardized, low-cost items and in times of crisis, when a strong leader must make the decisions that will guide the entire company.
