Organizational Structures and Controls
- Organization structure refers to a firm’s formal reporting relationships; authorities execute the decision-making processes. This structure determines the decisions to be made in the company.
- Organizational controls guide the implementation of strategies and indicate how the expected results are compared to the actual. Organizational controls lie at the heart of effective strategy implementation.
- Strategic control refers to the criteria used in verifying a company’s use of the appropriate strategies. It compares the company’s strategic fit by evaluating the internal environment concerning its macro environment.
- Financial control refers to the objective examination of a company’s financial performance against quantitative standards. This metric entails comparing a firm’s present performance absent that of the industry.
- Accounting-based measures refer to financial metrics that facilitate comparing companies’ financial performance in the sector. They include return on assets (ROA) and return on investments (ROI).
- The simple structure is implemented in a company where the owner is the manager and thus performs most of the activities and makes all decisions. This structure is matched with business-level strategies.
- The functional structure comprises the CEO, limited corporate staff, and functional managers. It also constitutes human resources, engineering, and even accounting departments.
- Multidivisional structure entails a corporate office and operating division that represents a profit center. Its benefit includes enabling corporate officers to monitor a company’s operations.
- The strategic business unit (SBU) constitutes an M-form inclusive of three levels: strategic business units, division, and corporate headquarters. Large organizations execute this structure.
- The word comprehensive geographic structure focuses on national interests and ensures a company satisfies the local differences. This structure is applicable to multinationals that have considerably diversified their operations geographically.
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Question 
Organizational Structures and Controls
Week 13 Literature Review
This week the readings/videos focused on the topic of Organizational Structures and Controls.
Organizational Structures and Controls
For this assignment, I would like for you to reflect on the literature and identify 10 key points that you took away from the assignments.
For each of the key points, you are to identify the point and provide 2-3 sentences explaining the point. Please number each of the 10 points.
Suggested video: https://www.youtube.com/watch?