Unit 2: Types of Organization

Question 1

What is a flat (horizontal) organization?

Answer 1

A flat organization has a few layers of management, a wide span of control and a short chain of command

Question 2

What is the chain of command in a flat organization?

Answer 2

A short chain of command, with fewer levels of management between top leadership and employees.

Question 3

What is the span of control in a flat organization?

Answer 3

The span of control is wide, meaning managers supervise a large number of employees.

Question 4

What types of organizations typically use a flat structure?

Answer 4

start up businesses, small organizations and organizations that value creativity and flexibility

Question 5

How does a flat structure affect communication?

Answer 5

it improves communication by reducing the number of management layers

Question 6

What is a disadvantage of a wide span of control in flat organizations?

Answer 6

can be difficult for managers to effectively supervise employees. (wide span of control)

Question 7

What is the organizational culture like in flat structures?

Answer 7

Open, informal and encourages creative

Question 8

How does a flat structure change as an organization grows?

Answer 8

It often becomes more formally structured and shifts to a tall (vertical) structure with more layers of management and narrow span of control

Question 9

What are the advantages of a flat organization?

Answer 9

Improved communication.

Encourages creativity and flexibility.

Greater decision-making authority for managers.

Question 10

What are the disadvantages of a flat organization?

Answer 10

Difficult to supervise employees due to the wide span of control.

Informal culture may lead to unclear responsibilities.

Question 11

What is a Tall Organization?

Answer 11

An organization with many layers of management in its hierarchy, where CEO’s at the top have more authority and responsibilities than
lower ranked employees

Question 12

What is the structure of a tall organization?

Answer 12

1. CEO at the top.
2. Senior managers below the CEO.
3. Low-ranked employees with minimal responsibilities at the bottom.

Question 13

Where are tall structures commonly used?

Answer 13

Large Business, central governments and the military.

Question 14

What are the characteristics of tall organizations?

Answer 14

1. Highly formal and bureaucratic
2. Long chains of command
3. Narrow Span of control for managers
4. Ridgid and inflexible structures

Question 15

What are the advantages of tall structures?

Answer 15

1. Clear lines of accountability.
2. Better control by senior managers.
3. Motivational for employees due to promotion opportunities.

Question 16

What are the disadvantages of tall structures?

Answer 16

1. slow decision making due to long chain of command
2. risk of miscommunication
3. bureaucratic and unvalued employees

Question 17

What is organization by product?

Answer 17

structuring the workforce based on goods or services sold, with departments focusing on specific product lines

Question 18

Which types of businesses use organization by product?

Answer 18

Large businesses with broad product portfolio such as Ford and Volkswagen and publishing firms like Holder education

Question 19

What are the advantages of organization by product?

Answer 19

1. Encourages specialization in market segments
2. Helps meet customer needs more effectively
3. Improves product knowledge and marketing activities
4. Encourages internal competition between departments

Question 20

What are disadvantages of organization by product

Answer 20

1. Duplication of work
2. Miscommunication between departments
3. Higher resource requirements to maintain separate divisions

Question 21

Why is organization by product suitable for large businesses?

Answer 21

it allows specialization and focus on different product lines within a broad portfolio, which improves efficiency and meets customer needs

Question 22

What is organization by function?

Answer 22

A structured workforce based on a businesses function such as marketing, Human Resources, production and finance

Question 23

Who is in charge of each functional department?

Answer 23

A manager or direction is responsible for overseeing the functional area

Question 24

What type of businesses is organization by function most suitable for?

Answer 24

Small businesses that focus only on one product or small numbers of goods or services

Question 25

What is the main advantage of organization by function?

Answer 25

Roles and tasks are preformed by experts, ensuring high productivity and outcomes

Question 26

What is a major drawback of organization by function?

Answer 26

Departments are often isolated, focusing only on their area of responsibility which limits collaboration

Question 27

What is organization by function

Answer 27

Structuring a workforce according to the geographical areas which it operates in.

Question 28

What type of businesses typically use organization by region?

Answer 28

Large business that have multiple operations in different locations like multinational companies

Question 29

How does organization by region benefit businesses?

Answer 29

It allows business to better meet the needs of customers from different regions and leverage local knowledge

Question 30

What is a real world example of organization by region?

Answer 30

McDonald’s has multiple regional offices operating management in North America, Asia, Middle East and Africa, adjusting tastes and preferences