5. Strategy and structure (Connect, Perform)

The following table shows the differences between companies as they become more organic or more mechanistic. You can use the slider on the left to highlight characteristics for a particular structure.

Use the table to answer the question below.

MechanisticOrganic

Structure	Chain of Command	Communication Flow	Span of Management	Decision Making
Vertical Functional	Long	Vertical	Narrow	Centralized
Divisional	Long	Vertical	Narrow	Centralized
Matrix	Dual	Vertical & Horizontal	Narrow	Decentralized
Team-Based	Short	Horizontal	Broad	Decentralized
Virtual Network	Short	Horizontal	Broad	Decentralized

As an organization becomes more organic, its chain of command becomes .

- Broader

- Norrower

- longer

- shorter

The following diagram is a simplified continuum illustrating the relationship between an organizations strategic goals and its idea structure.

Complete the diagram with the missing labels.

A Differentiation, innovation, flexibility

B cost leadership, efficiency , stability

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Dollar General uses a cost leadership strategy. The Dollar General slogan is Save time. Save money. Every day! Dollar General will be more effective if it has structure.

- a mechanistic

- an organic

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Which of the following reasons explain this? Check all that apply.

Horizontal communication and broad spans of management allow for added flexibility in employee decision making.

Short chains of command ensure that the company will operate most effectively in a turbulent environment.

Centralized decision making allows the organization to place tighter controls on the way work is done and, in the process, achieve economies of scale.

Narrow spans of management ensure that employees operate efficiently.

Functional Structure Functional with Interdepartmental Task Forces, Integrators Divisional Structure Horizontal Teams Strategic Goals: Strategic Goals Strategic Goals: Mechanistic Organic