Chapter 7 Flashcards
What does organizational structure refer to?
A) The layout of the company’s physical facilities
B) The arrangement of jobs and people into specific areas and levels of authority
C) The organization’s marketing strategy
D) The legal structure of the business, such as partnership or corporation
b
What is the primary purpose of departmentalization within a company?
A) To ensure all departments are treated equally
B) To organize different functions into manageable units
C) To simplify the hiring process
D) To decrease operational efficiency
b
What is meant by ‘chain of command’ in a business context?
A) The order in which products are produced
B) The system of reporting relationships within the company
C) The process of managing supply chain operations
D) The company’s organizational chart without any direct authority
b
What is the difference between centralization and decentralization in management?
A) Centralization involves decision-making by lower-level employees, while decentralization involves high-level managers
B) Centralization refers to decision-making authority concentrated at upper levels, while decentralization refers to dispersing authority to lower levels
C) Centralization deals with external business transactions, decentralization deals with internal management
D) There is no significant difference; both terms mean the same
b
What role does the matrix structure play in organizational design?
A) It eliminates departmentalization
B) It arranges employees by function and product simultaneously
C) It is used only in small businesses
D) It focuses on legal structures rather than managerial
b
How does specialization affect organizational efficiency?
A) It decreases efficiency due to narrowed skill sets
B) It increases efficiency by dividing complex tasks into manageable jobs
C) It makes organizations more prone to errors
D) It is irrelevant to modern organizational design
b
What is the informal organization within a company?
A) The network of personal and social relations that develop organically among employees
B) A formal set of rules and regulations
C) A temporary project team
D) The documented organizational structure
a
Why is flexibility important in organizational design?
A) It helps maintain a rigid corporate structure
B) It allows the organization to adapt to changes and challenges
C) It is only important in technology companies
D) It prevents employees from leaving the company
b
What is a divisional structure in an organization?
A) A structure where divisions are based on geographic location
B) A structure where each function has its own division
C) A structure that groups together activities related to outputs, like products or markets
D) A structure that focuses solely on internal operations
c
What are line positions in a company?
A) Positions with authority and responsibility for achieving organizational goals directly
B) Support positions without direct operational control
C) Temporary project roles
D) Positions held by external consultants
a
What does the term ‘span of control’ refer to in organizational design?
A) The geographical distribution of an organization’s operations.
B) The number of employees a manager can effectively manage.
C) The length of time required for a new employee to become productive.
D) The number of organizational levels in the corporate hierarchy.
B
Decentralization in an organization typically results in:
A) Higher levels of bureaucracy in decision making.
B) Greater autonomy for lower-level managers.
C) Fewer managers involved in decision processes.
D) A strong concentration of power at the top.
B
Which organizational structure is characterized by a combination of functional and divisional chains of command?
A) Matrix structure
B) Hierarchical structure
C) Network structure
D) Virtual organization
A
The main disadvantage of a functional organizational structure is:
A) It supports rapid decision making.
B) It does not promote specialization.
C) It can lead to poor communication across departments.
D) It is too flexible.
C
Which is not a feature of a ‘boundaryless organization’?
A) Elimination of traditional barriers between departments.
B) Heavy reliance on a fixed organizational hierarchy.
C) Encouragement of innovation through a flexible approach.
D) Use of technology to share knowledge across the organization.
B
