You have learned about the traditional and new design options for organizational structures. You have decided that one of the designs developed during the last decade or two is probably the most appropriate for your newly-formed organization.
-You have decided to hire other organizations to perform many of the basic functions of your business. You have hired an accounting firm to keep your records, a recruiting firm to handle human resource functions, and a computer firm to handle all records. To keep costs down, you are looking for other areas in which to outsource operations. You have chosen to operate your business as a ________.
A) matrix organization
B) virtual organization
C) team structure
D) boundaryless structure
E) organizational pyramid

Question

Quizplus · Accepted Answer

A virtual organization is a structure where most of the business functions are outsourced or contracted out to other organizations, which helps to keep costs down. In this structure, the organization has a small core team that manages the outsourced functions and focuses on the central business operations.

You Have Learned About the Traditional and New Design Options