Which structure should you seriously consider as an alternative to the current divisional structure by gym location?

(A) A divisional structure by customer segment.

(B) A matrix structure that leaves the current divisions intact and overlays it with centralised functions for procurement, training methods, finance, HR, and marketing.

(C) A functional structure – e.g. procurement, gym operations, training methods, HR, finance, marketing – that gets rid of the gym directors

(D) None of the above

Explanation

An alternative to the current divisional structure by gym location is a functional structure. A Functional by specialisation organisation structure is the one in which the main organisation is divided into other smaller groups based on one specialised functional area. In this case, a functional structure for the gym will have procurement, gym operations, training methods, HR, finance, marketing – that gets rid of the gym directors.

Conclusion

This question is a part of the Weekly Quiz 3 section from the Organisational design: Know your organisation course. You can check out all the quiz answers to this exam in our Organisational design: Know your organisation Quiz Answers page.

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