Chapter 10
What is the main purpose of a functional structure?
to group people with the same skills or tasks ( finance, marketing).
Name one of the three main control systems.
Output control, behavior control, or clan control.
Traditionally, who was seen as mainly responsible for organizational culture?
CEO or HR
What is one advantage of a divisional structure compared to a functional structure?
It focuses on products, regions, or customers, making the organization more responsive.
What is the difference between feedforward control and feedback control?
Feedforward = anticipates problems before they happen; Feedback = fixes them after.
What is the central argument of Denise Lee Yohn’s article?
Culture is everyone’s responsibility, not just leaders
What is a matrix structure and why can it cause conflicts?
Employees report to two managers (functional + product). Conflicts arise from dual authority.
Give one example of an output control measure.
Budgets, financial ratios, or goals like ROI.
What role does the Board of Directors play in shaping culture?
They set the tone at the top and align culture with strategy
In what situation would a functional structure be a disadvantage compared to a divisional structure?
When the company operates in multiple markets or regions, because coordination across functions becomes too slow.
How could managers use all three control systems (output, behavior, clan) at the same time in a crisis?
Output = set financial targets, Behavior = enforce cost-saving rules, Clan = motivate through shared values.
If culture is “everyone’s responsibility,” why can this idea still be dangerous?
Risk: No clear accountability, culture becomes vague, no one feels responsible
Why might a matrix structure outperform both functional and divisional
It combines specialization (functional) with product/region focus (divisional), improving coordination.
Why can a pure top-down change fail even if the strategy itself is correct?
Because employees resist if they are not involved -> resistance outweighs driving forces -> change collapses
The article argues culture must be “embedded into daily operations.” How could this fail if only employees (not leadership) push for it?
Without leadership, employees may lack resources, alignment, and reinforcement → culture stays fragmented and weak.