In the context of organizational structures, identify a difference between a functional structure and a network structure.
A) Division of labor in a functional structure is based on outputs, whereas division of labor in a network structure is based on inputs.
B) Coordination is hierarchical in a functional structure, whereas coordination in a network structure is in the form of cross-functional teams.
C) A functional structure organizes units based on the products manufactured, whereas a network structure organizes units based on the activities that each unit performs.
D) The importance of informal structure is modest in a functional structure, whereas the importance of informal structure is low in a network structure.

Question

Quizplus · Accepted Answer

Coordination in a functional structure is indeed hierarchical, reflecting its traditional, top-down approach to management and decision-making. In contrast, a network structure relies more on coordination across different functions, often through cross-functional teams, to promote flexibility and responsiveness to changes in the environment or market. This allows for more dynamic collaboration and sharing of resources across the organization.

In the Context of Organizational Structures, Identify a Difference Between