Question 1

Efficient use of labour is one of the advantages of division of labour.

Accepted Answer

Division of labour involves assigning specific tasks to different workers based on their skills and specialization. This allows for more efficient use of labour as each worker can focus on their specific task, leading to increased productivity and reduced time spent on switching between different tasks.

Question 2

When a manager has a large span of control, she can maintain close control over workers and stay in contact with daily operations.

Accepted Answer

When a manager has a large span of control, it means that they are supervising a large number of employees or departments. This can make it difficult for them to maintain close control over each worker and stay in constant contact with daily operations. As a result, a large span of control is often associated with a more decentralized management style and greater employee autonomy.

Question 3

Implicit rules are set down in job descriptions, policy and procedure manuals, and office memos.

Accepted Answer

Implicit rules are not formally written down but are understood and followed within a workplace or other community, unlike explicit rules which are documented in job descriptions, policy and procedure manuals, and office memos.

Question 4

Departmentalisation by customer is based heavily on geography.

Accepted Answer

Departmentalisation by customer is based on the type of customer served, not geography. Departmentalisation by geography is a separate concept that organizes departments based on physical location.

Question 5

Span of control is the degree to which rules and procedures shape employees' jobs and activities.

Accepted Answer

Span of control refers to the number of subordinates an individual manager can effectively manage, while rules and procedures shape the level of bureaucracy and formalization in an organization. They are not directly related to each other.

Question 6

A virtual organisation may not even have a permanent office.

Accepted Answer

A virtual organisation operates through remote communication and collaboration, and may not have a physical office space.

Question 7

Most organisational problems can be fixed with restructuring.

Accepted Answer

Organisational problems can have various root causes and may not necessarily be solved by restructuring alone. Additional actions such as addressing communication issues, improving decision-making processes, and enhancing employee engagement may also be required.

Question 8

Division of labour is the separation of work into different jobs to be done by different people.

Accepted Answer

Division of labour is indeed the separation of work into different jobs to be done by different people.

Question 9

It is impossible for a large organisation to retain elements of an organic structure.

Accepted Answer

It is possible for a large organization to retain elements of an organic structure, such as cross-functional teams, decentralization, and flexibility in decision-making. However, it may become more difficult to maintain such structures as the organization grows larger and more complex.

Question 10

A centralised organisation concentrates decision making at the top of its hierarchy.

Accepted Answer

In a centralised organisation, decision making authority is concentrated in the hands of the top management or a small group of individuals at the top of the hierarchy.

Question 11

The purpose of organisational structure is to appeal to external competitors.

Accepted Answer

The purpose of organizational structure is not to appeal to external competitors but rather to create internal efficiency, clarity of roles and responsibilities, and promote effective communication and decision-making within the organization.

Question 12

A company's pre-structural characteristics, which are determined largely by the founder's personality and values, often stay with the company even after it grows.

Accepted Answer

Pre-structural characteristics, which are shaped by the founder's personality and values, tend to remain with the company as it grows and develops. These characteristics may include things like organizational culture, leadership style, and decision-making processes. Even if the company hires new employees and executives, these pre-existing characteristics can influence how the company operates and responds to challenges.

Question 13

An organisational chart illustrates the chain of command and reporting relationships in a company.

Accepted Answer

An organizational chart is a graphical representation of the management structure of a company that illustrates the chain of command and the reporting relationships among employees. It is an important tool for understanding the hierarchy of a company and the roles and responsibilities of its various departments and employees.

Question 14

Formalisation tends to delineate rules and procedures for employees' jobs.

Accepted Answer

Formalisation involves defining clear rules and procedures for employees to follow in their jobs.

Question 15

If there is much employee participation in decision making, the organisation structure is decentralised, regardless of the nature of the decisions being made.

Accepted Answer

Decentralisation refers to the delegation of decision-making power to lower levels of the organization. If there is much employee participation in decision making, it implies that decision-making power is not held exclusively by top-level managers, which is a characteristic of decentralisation. Therefore, the organisation structure is decentralised.

Question 16

One downside of a high division of labour is that it tends to isolate employees.

Accepted Answer

High division of labour involves breaking down tasks into smaller and more specialized tasks, which can limit employees' interactions with each other and create a sense of isolation.

Question 17

It's impossible for managers to create effective communities of practice, only the conditions necessary for them to exist.

Accepted Answer

Communities of practice are organic and self-organizing groups that develop naturally among individuals who share a common interest or goal. Managers cannot create them directly but can create the conditions necessary such as providing resources and support structures to facilitate their development.

Question 18

Responsibility cannot be delegated to others, but authority can.

Accepted Answer

Responsibility is ultimately held by the individual or group who has been given the task, and cannot be transferred to another person. However, authority can be delegated to others in order to help carry out the responsibilities.

Question 19

Centralisation is the system of reporting relationships in the organisation.

Accepted Answer

Centralisation refers to the concentration of decision-making authority at the top levels of an organization, not just the system of reporting relationships.

Question 20

Although it is difficult to determine, there exists an optimal organisational size.

Accepted Answer

The optimal organizational size can vary depending on numerous factors such as industry, goals, and resources, making it difficult to define a universally optimal size.

Quiz 14: Organisation Structure and Design