Question 1

While holistic organisations may be more fulfilling to work for, and add greater meaning to employees' lives, it is also likely that they will demand higher productivity and increased shareholder value from their employees in return.

Accepted Answer

Holistic organizations often aim to create a more fulfilling and meaningful work environment by integrating employees' personal growth, well-being, and professional development. This approach can lead to higher employee engagement and motivation, which in turn can increase productivity and potentially enhance shareholder value as employees are more committed and contribute more effectively to the organization's goals.

Question 2

Which of the following statements is true of organisations with modern, flexible organisational structures?

Accepted Answer

Organisations with modern, flexible organisational structures require employees to have a more strategic understanding of the organisation's vision and goals (A), as well as solid interpersonal skills (B). Leader-managers need to develop a range of interpersonal and conceptual skills (C) and a range of strategic and leadership skills (D). Therefore, all of these responses are correct (E).

Question 3

One possible positive aspect of flatter, more decentralised organisations is:

Accepted Answer

The positive aspects listed in options A, B, C, and D are all potential benefits of a flatter, more decentralized organization, and are not mutually exclusive. Therefore, option E, which states that all of the responses are correct, is the best choice.

Question 4

In a decentralised organisation, decision making is:

Accepted Answer

In a decentralised organization, decision making is made by those who are closest to the core of the business' operations. This ensures that decisions are made based on firsthand knowledge and experience. It also promotes quicker decision making and allows for more flexibility in responding to changes in the market or environment.

Question 5

Capabilities-based organisations measure their success on functional efficiency, rather than on process goals, thus improving productivity and profitability as well as customer and employee satisfaction.

Accepted Answer

Capabilities-based organizations focus on developing and leveraging specific capabilities to achieve strategic goals, rather than solely emphasizing functional efficiency.

Question 6

A multidisciplinary team will function least effectively when:

Accepted Answer

The organisational structure being hierarchical can create barriers to effective communication and collaboration within a multidisciplinary team. It can also lead to power imbalances, which can hinder the contributions of team members who hold less formal authority.

Question 7

Where an organisation overlays a core process onto a functional structure, or a functional structure onto a process structure, it is known as a hybrid structure.

Accepted Answer

This statement is true. A hybrid structure is created when an organization combines elements of both functional and process structures in their organizational design.

Question 8

Which of the following would be likely to handle change most effectively?

Accepted Answer

Process-based organisations are designed around business processes rather than products, functions, or geographic locations, allowing them to handle change more effectively. They are inherently flexible and adaptable, with a focus on continuous improvement and a willingness to make changes to their processes as needed.

Question 9

Increased business complexity, capabilities-based competition, changing customer expectations, globalisation and the knowledge and information workers of the new economy mean that businesses have now need to link the relationships between people and functions:

Accepted Answer

Horizontal linking of relationships between people and functions allows for greater collaboration and coordination, which is necessary to address the challenges of increased business complexity, capabilities-based competition, changing customer expectations, globalization, and the knowledge and information workers of the new economy.

Question 10

An organisation represented in the form of an atom, with a 'nucleus' of essential, core employees surrounded by 'electrons' of contractors and 'protons' of outsourced providers, is an example of:

Accepted Answer

This description fits a virtual structure, where the core organization is small and is surrounded by a network of external suppliers and contractors, similar to an atom's structure with a nucleus and surrounding electrons.

Quiz 3: The Formal Organisation