Question 1

Which type of organizational structure works well for smaller organizations, where employees are managed by means of clear levels of authority, but with a risk of lack of communication between the different departments because of their tendency to work separately from each other?

Accepted Answer

Functional organizational structure is ideal for smaller organizations where employees are grouped by their knowledge and skills, which leads to clear levels of authority. However, this structure can result in poor communication between different departments due to their tendency to operate independently.

Question 2

______ is the number of direct reports assigned to a given manager.

Accepted Answer

Span of control refers to the number of direct reports a manager has, indicating how many employees report directly to them.

Question 3

Laura is the CEO of her company. There are about 25 people in her company as a whole. She manages a team consisting of departments called sales and marketing, accounting, technology, human resources, and administration. Even though her company is relatively small, she has to be careful of the lack of communication between the departments because of their tendency to work apart from each other. Laura works in which type of organizational structure?

Accepted Answer

Laura's company is organized into departments based on functions such as sales and marketing, accounting, technology, human resources, and administration. This indicates a functional organizational structure, where the organization is divided into smaller groups based on specialized functional areas.

Question 4

Jill has been promoted from assistant manager to manager of Willie's Oyster House. She had responsibility for 10 staff members, but she now has responsibility for 50 staff members, which means her ______ has increased.

Accepted Answer

The span of control refers to the number of subordinates a manager has the responsibility to supervise directly. Since Jill's number of direct reports increased from 10 to 50, her span of control has increased.

Question 5

With a ______ organizational structure groups that are performing similar tasks may be at risk of duplicating their work and they may also compete for shared resources?

Accepted Answer

The answer of With a ______ organizational structure groups that...

Question 6

The ______ is a formalized structure based on centralization and departmentalization.

Accepted Answer

The answer of The ______ is a formalized structure based...

Question 7

At GG's Gourmet, employees of lower levels are given the power to make decisions and solve problems without having to seek approval from management. This is an example of what type of organizational structure?

Accepted Answer

Decentralized organizational structures allow lower-level employees to make decisions and solve problems independently, reducing the need for direct supervision and approval from higher management levels.

Question 8

Nathan is the CEO of an organization that is located all over the United States. Because there are different needs across the United States, he has grouped his employees in regions: East Coast, Central, and West Coast. He realizes that he is duplicating a few tasks within the organization, such as accounting and human resources, but it is the best structure for him at this time. Nathan is using which type of organizational structure?

Accepted Answer

Nathan is using a divisional organizational structure, which groups employees based on geographic regions, products, or services. This allows for focus on specific regional needs but can lead to duplication of functions like accounting and human resources in each division.

Question 9

______ is the degree to which rules and procedures are standardized in an organization.

Accepted Answer

Formalization refers to the extent to which an organization's policies, procedures, job descriptions, and rules are written and explicitly articulated. This standardization ensures that actions and decisions are consistent across the organization.

Question 10

Which of the following is a characteristic associated with the organic model of organizational structure?

Accepted Answer

The organic model of organizational structure is characterized by flexibility, decentralized decision-making, and a high degree of horizontal communication, which often involves the presence of cross-functional teams to encourage collaboration across different areas of expertise.

Question 11

In order to get approval for travel, employees must get their travel authorization signed by a manager before the travel authorization is sent to the finance office for approval. This is an example of what component of organizational structure?

Accepted Answer

This scenario exemplifies the "chain of command" component of organizational structure, as it outlines a specific hierarchy and sequence (manager then finance office) that must be followed for travel authorization approval.

Question 12

Alex has a small business of physical trainers. He has one location with three trainers and a front desk receptionist. He makes all the decisions on his own regarding his company. What type of organizational structure does Alex work in?

Accepted Answer

Alex's business operates under a simple organizational structure, characterized by a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization. This fits his business as he makes all decisions and has a small team.

Question 13

Which type of organizational structure has drawbacks, including the reality that the business owner may become overloaded with work or may be reluctant to delegate when necessary, which could slow down the progress of the organization?

Accepted Answer

The simple organizational structure typically consists of a single business owner or a small group of partners who are responsible for making all major decisions and overseeing all operations. This can lead to the owner becoming overloaded with work, especially as the business grows, and may also result in a reluctance to delegate tasks, potentially slowing down the organization's progress.

Question 14

Which type of organizational structure can be described as having the benefit of no layers of management, which allows decisions to be made and implemented quickly?

Accepted Answer

The simple organizational structure is characterized by having no layers of management between staff and executives, which facilitates quick decision-making and implementation.

Question 15

Which type of organizational structure is more common in small organizations where there is one central authority figure, usually a business owner, who tends to make the decisions?

Accepted Answer

Simple organizational structure is more common in small organizations where there is a single central authority figure, such as a business owner, who makes most of the decisions. This structure is characterized by its lack of complexity and minimal formal departments.

Question 16

Which type of organizational structure groups employees according to the tasks they perform for the organization, such as marketing, finance, and human resources?

Accepted Answer

Functional organizational structure groups employees based on their job functions, such as marketing, finance, and human resources.

Question 17

Which of the following is an advantage of a wide span of control?

Accepted Answer

A wide span of control allows managers to delegate more responsibilities to employees, which can lead to higher employee morale as they feel more trusted and valued.

Question 18

______ is an organizational style characterized by formalized rules and regulation, specialized routine tasks, division of labor, and centralized authority.

Accepted Answer

Bureaucracy is defined by its structured and formalized rules, division of labor, specialization, and centralized authority, fitting the description provided.

Question 19

Which type of organizational structure groups employees by products and services, by geographic regions, or by customers?

Accepted Answer

The divisional structure groups employees based on products and services, geographic regions, or customers, allowing for specialization in particular areas or markets.

Question 20

Which concept below is defined as a flow of authority and power from the highest to the lowest levels of the organization?

Accepted Answer

The chain of command is the concept that refers to the flow of authority and power from the highest to the lowest levels within an organization, ensuring clear assignment of responsibilities and reporting relationships.

Quiz 15: Organizational Change and Structure