Question

A fabric design company is known for the designs it develops, owing to its creative talent and knowledge of the market. This firm uses partner organizations to take orders, ship products, and manage employee benefits. The company has a _____ structure.

Answer 1

Answer:

Hollow structure

Explanation:

An organizational structure is a context that helps organizations to achieve their business goals. It clearly describes the relationship between the various departments and teams. It helps organizations to delegate authority, power, and responsibility.

An organizational structure shows employees a clear reporting system helping to avoid conflicts and supporting good communication. An organizational structure is necessary for smooth functioning of the company.

A hollow organization is an organization relies mainly on outsourcing,which enables it to maintain low staffing levels while capitalising on the capabilities of other partner organisations.

Answer 2

Answer: Hollow structure.

Explanation:

Hollow organizational structure segregates work and workers by core and non-core competencies. A hollow structure is an outsourcing model where the organization maintains its main processes internally but outsources the noncore processes.

Hollow structure is effective for an industry that is price competitive and the choices for outsourcing exist. Example is a sports organization which has its HR functions handled by outside organizations. Hollow structures help in the minimization of overhead and enables firm focus on their core function.