Question

Identify two key design choices firms may be required to make when deciding on the structure of their firm. How their choices could impact the conduct and performance of the firm. Examples are required.

Answer 1

Answer 1) Well designing a organization structure depends upon many factors some of the be like number of manpower in the office, layout of the office, processes going in the office, hierarchy of post of employees etc. but at the end of the day it is very important to define a perfect organization structure so that maximum efficiency can be obtained from employees, so now talking about two key design choices firms may be required to make when deciding on the structure of their firm:

1) Functional/Process: The first thing that needs to be kept in mind is or design choice may be as per the process going in the organization or the kind of functions going in the firm it becomes very important for a firm to know about the processes they are going to have in their working and of basis of that design choice organization structure can be made for example process of producing raw materials, assembling, painting, finishing goods etc on basis of processes perfect organization structure can be taken into consideration

2) Centralization/Work: Next key design of choice can come from the kind of employees working in the firm is the working of the firm centralized or de centralized, is their chain of command or not in the working of the firm, is there the rule of delegation of authority or not. Considering all the factors on the basis of them perfect structure can be known. This element is also very much required for finalizing the perfect organization structure.