E

E

Student answers may vary. A study of general managers concluded that managers of the larger organizational subunits had more demanding jobs in comparison to managers of smaller units. Decisions are more difficult due to the sheer volume of issues and activities and the lack of detailed knowledge a manager is likely to have. Because larger units are likely to have a more bureaucratic structure, managers must cope with more constraints (e.g., rules, standard procedures, and required authorizations). Consistent with this analysis, general managers in larger organizational units had larger networks and attended more scheduled meetings. When a manager has a large number of subordinates, it is more difficult to get all of them together for meetings, or to consult individually with each subordinate. Such leaders tend to use less participative leadership or to limit it to an "executive committee" or to a few trusted "lieutenants." Heller and Yukl found that as span of control increased, upper-level managers made more autocratic decisions, but they also used more delegation. Both decision styles allow a manager who is overloaded with responsibilities to reduce the amount of time needed to make decisions.. As the size of a work unit increases, so does the administrative workload. Managers spend more time on planning, coordinating, staffing, and budgeting activities. The increase in coordination requirements is magnified when the subordinates have highly uncertain and interdependent tasks. Sometimes part of the increased administrative burden can be delegated to a second in command, to a coordinating committee composed of subordinates, or to new coordinating specialists who serve as staff assistants. In many cases, however, the leader is expected to assume the responsibility for providing direction and integration of group activities.

1. Decide on your purpose-informative or decision-making.
2. Select participants-involve only those whose presence is essential.
3. Choose an appropriate location-consider time and seating arrangements.
4. Set and follow an agenda-distribute it ahead of time.

D

Answers will vary. A functional structure organizes a company into units that are identified by their functional roles, or what they do. For instance, a functional organization will have an R&D unit, a sales unit, a marketing unit, a manufacturing unit, a finance unit, and so on. Each of these functional units serves the whole organization.
The advantage of a functional structure is its efficiency in coordinating all the people who work on the same tasks. More specifically, it groups finance people to work with other finance people and operations people to work with other operations people. Thus, the people in each function are better able to coordinate their tasks, develop expertise, and mentor newcomers.
Unlike a functional structure, which organizes a company's units by their activities, a divisional structure organizes units by the products they make, the customer segments they serve, or the geographic location in which they operate.
For instance, Ford Motor Company's geographic divisional structure organizes its units into North America, South America, Europe, Middle East and Africa, and Asia Pacific. Each geographic division is responsible for, and has subunits dedicated to, the developing, manufacturing, distributing, and servicing vehicles within that region. Ford's Credit Division, an exception, handles financing and leasing worldwide. A divisional structure focused by region is appropriate for global businesses pursuing a multidomestic strategy, allowing them to understand and respond to the needs of local customers.
In general, the benefit of a divisional structure is the company's ability to develop specific and unique offerings for each target group.
The sections "Functional Structure" and "Divisional Structure" on pages 273-274 discuss functional structures and divisional structures. Students can use this section to make their own interpretation and answer this question.