When an organization outsources its noncore functions, retains control over its core business, and then arranges networks of specialists around that core that can be added to or subtracted from as needed, the business has adopted a:
A) modular organizational structure.
B) matrix organizational structure.
C) virtual organizational structure.
D) product organizational structure.

Question

Quizplus · Accepted Answer

The described structure is a modular organizational structure, where the organization outsources noncore functions and forms networks of specialists around its core business. This results in a more flexible and agile organization that can adapt to changes in the business environment. The other options, such as matrix, virtual, and product organizational structures, do not accurately describe the characteristics of the organization as outlined in the question.

When an Organization Outsources Its Noncore Functions, Retains Control Over