If management is to match a company's organization structure to its strategy in an effective way, then it is essential
A)that company personnel be empowered to make both strategic decisions and operating decisions.
B)for strategy-critical value chain activities to be the main building blocks on the organization chart.
C)that value chain activities be deliberately organized so as to produce maximum strategic fit.
D)to define the jobs of company personnel in terms of the functions to be performed rather than in terms of the results to be achieved.
E)for the company to be organized around cross-functional teams rather than around functional specialties and functional departments.

Question

Quizplus · Accepted Answer

Matching an organization structure to a company's strategy means identifying and prioritizing strategy-critical value chain activities and arranging them as the building blocks on the organization chart. This ensures that the company's resources are optimally allocated, and that the organization is aligned with the strategy. While the other options may also be important, B is the most essential factor in achieving an effective match between strategy and structure.

If Management Is to Match a Company's Organization Structure to Its