Several years after the retirement of Mr. Jamal, management at JOC decided to sell off its oil exploration and drilling supply holdings, and instead focus on the more profitable distribution end of the business. In conjunction with this decision, management decided to outsource most of its non core functions, such as accounting, payroll, and human resources. These moves are consistent with what type of contemporary organizational design?
A) a matrix organization
B) a network organization
C) a virtual organization
D) a modular organization

Question

Quizplus · Accepted Answer

The decision to focus on the more profitable aspects of the business while outsourcing non-core functions is consistent with a network organization. This type of organization relies on a network of external companies to perform its processes, allowing it to be more flexible and concentrate on its core competencies.

Several Years After the Retirement of Mr