Question

Which of the following types of organizational designs combines two forms of departmentalization: functional and product?

A) simple structure
B) bureaucracy
C) matrix structure
D) virtual structure
E) boundaryless structure

Answer 1

The matrix structure is the organizational design that utilizes both functional and product departmentalization, allowing efficient resource use and expertise in dynamic business environments.

Step-by-step explanation:

The type of organizational design that combines two forms of departmentalization, functional and product, is the C) matrix structure. This structure uniquely overlaps both types, placing employees under the supervision of two bosses typically, one with expertise in a functional area (such as engineering, marketing, or finance) and one with responsibility for a product, project, or program. The matrix structure allows for the most efficient use of resources and expertise and is often used in complex and dynamic business environments.

In contrast to a matrix structure, A) simple structure is usually found in small businesses with low complexity, where the manager or owner makes all the major decisions and oversees all the employees directly. B) bureaucracy is a form of organization with clear hierarchies and division of labor, typically rigid in its operations. D) virtual structure consists of a small core organization that outsources major business functions and usually leverages technology to coordinate a network of partners. Lastly, E) boundaryless structure is an organization that seeks to eliminate traditional barriers between departments and the external environment.