Determining the optimal choice between two alternatives


Problem 1. Discuss the costs and benefits of specialized task assignment relative to broad task assignment. What variables are likely to be particularly important in determining the optimal choice between these two alternatives?

Problem 2. Define the following: functional organizations, product organization, geographic organization, matrix organization, and network organization.

Problem 3. Discuss the circumstances under which you think functional organizations will work best.

Problem 4. Discuss the pluses and minuses of matrix organizations.

Problem 5. Why do you think many U.S. firms have reorganized their international divisions from a country focus to matrix organizations focusing on both country and product?

Problem 6. In the early 1990's Chrysler Corporation placed nearly all decisions about the development of a new vehicle in the hands of a single, cross-functional product team. In contrast, General Motors used an approach that placed a stronger emphasis on functional specialties. Small teams were established that consisted of experts from the same functional field. Each team was charged with a particular assignment that related to its area of specialization. For example, one team might have had the primary responsibility for the design of the body of the vehicle, whereas another team might have been charged with developing the drive train. The teams worked simultaneously on their specific tasks. Some individuals on these teams also served on additional cross-functional teams that were charged with coordinating the development process across the functional areas. Discuss the relative advantages and disadvantages of these two approaches to product development.

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