Question 1

The more traditional answer to the question popularised by business historian Alfred Chandler, 'Which comes first, organisational strategy or organisation structure?' was:

Accepted Answer

Alfred Chandler famously argued that strategy comes before structure in his adage "structure follows strategy," suggesting that an organization's structure is designed to facilitate the execution of its strategy.

Question 2

The form of departmentalisation which combines workers who are performing the same kind of activities is called the:

Accepted Answer

Functional structure is the form of departmentalization that groups together employees who are performing similar or related tasks.

Question 3

Production, marketing, accounting and research and development are departments in an organisation which uses the ______________ organisation design.

Accepted Answer

Functional structure is characterized by the organization being divided into departments based on functions such as production, marketing, accounting, and research and development. This allows for specialization and efficiency within each functional area.

Question 4

In organisation structure, the term function refers to:

Accepted Answer

The term "function" in organizational structure refers to a specialized area of expertise, such as marketing, finance, or human resources, where tasks are grouped based on similar skills and work activities.

Question 5

Which of the following statements is correct? Firms setting up functional structure:

Accepted Answer

Functional structure focuses on organizing employees and tasks into departments based on functions or skills, such as marketing or finance. The necessity to include distribution management or investment departments is not inherent to the definition or requirement of a functional structure, as these specifics depend on the organization's nature and needs.

Question 6

Which of the following is considered to be an advantage of the functional structure form of organisation design?

Accepted Answer

Functional structures allow for the specialization of tasks and development of expertise among employees, as individuals focus on their specific area of expertise.

Question 7

The functional structure form of organisation design has a number of advantages. Which of the following is not one of them?

Accepted Answer

The functional structure form of organization is primarily focused on internal operations and efficiencies rather than being oriented towards external factors like customer requirements. This structure divides the company based on specialized functional areas such as marketing, finance, and production, which can lead to efficiencies and expertise in those areas but does not inherently focus on customer needs.

Question 8

Exact measurement of performance, bottlenecks due to sequential tasks and backlog of decisions at top level are likely to be disadvantages of _____________ structure.

Accepted Answer

Functional structures often lead to exact measurement of performance within specialized departments. However, they can also create bottlenecks due to sequential tasks needing to pass through each department and can accumulate a backlog of decisions at the top level, where high-level managers are required to make decisions across diverse functional areas.

Question 9

The functional structure form of organisation design would be most appropriate for which of the following circumstances?

Accepted Answer

The functional structure is most appropriate for small and medium-sized organizations because it allows for specialization within specific business functions (e.g., marketing, finance, operations) which is more manageable and effective in smaller settings.

Question 10

A general manager who works in the white goods division is likely to be operating in which organisational structure?

Accepted Answer

A divisional structure is often used in organizations that have operations spread out over wide areas or that have distinct smaller organizations within the umbrella group, each tasked with handling certain types of products or services. In this case, a general manager working in the white goods division implies a structure where the organization is divided into semi-autonomous units or divisions, each focusing on a particular product line or market segment, which aligns with the divisional structure.

Question 11

The divisional structure form of organisation design has a number of advantages. Which of the following is not one of them?

Accepted Answer

The divisional structure form of organization design does not inherently provide economies of scale as its primary advantage. Instead, it focuses on responsiveness to environmental changes, alignment with customer needs, and the ability to measure division performances accurately. Economies of scale are more associated with centralized, large-scale operations rather than the decentralized nature of divisional structures.

Question 12

Heightened competition among divisions and limited sharing of expertise across divisions are disadvantages of which structure?

Accepted Answer

Heightened competition among divisions and limited sharing of expertise across divisions are disadvantages typically associated with a divisional structure. In a divisional structure, each division operates semi-autonomously to focus on a specific product line or market segment, which can lead to competition for resources and less collaboration across divisions.

Question 13

Which of the following is considered to be an advantage of the hybrid structure form of organisation design?

Accepted Answer

The hybrid structure combines elements of both functional and divisional structures, aiming to leverage the advantages of both. This structure helps in aligning corporate goals with the divisional goals by allowing for specialization within divisions while maintaining a central oversight, ensuring that all parts of the organization are working towards the same overall objectives.

Question 14

The hybrid structure form of organisation design would be most appropriate for which of the following circumstances?

Accepted Answer

The answer of The hybrid structure form of organisation design...

Question 15

In an organisation using the matrix structure form of organisation design, the employees report to two managers: the 'horizontal' manager is the business or project manager, the 'vertical' manager is the:

Accepted Answer

In a matrix structure, employees report to both a project or business manager (horizontal manager) and a functional manager (vertical manager). The functional manager is responsible for the management of functional areas such as marketing, engineering, or human resources.

Question 16

There are four main stages to implementing a matrix structure. Which of the following statements correctly represents one of the stages?

Accepted Answer

The given statements do not accurately describe the stages of implementing a matrix structure. Implementing a matrix structure typically involves recognizing the need for a matrix, defining the balance of power between the axes, establishing integrated management roles, and continuous development and balance. None of the options provided accurately reflects these stages.

Question 17

The role of a managerial integrator is to:

Accepted Answer

The role of a managerial integrator includes directly working with functional department members, informally supervising the work of staff assigned to projects, and emphasizing teamwork. These activities are all aimed at integrating efforts across different parts of an organization to ensure projects are completed effectively and efficiently.

Question 18

Strong project or product coordination, flexible use of human resources, the ability to add or reassign functional specialists as needed and facilitate environmental monitoring are most associated with the _____________ form of organisation design.

Accepted Answer

The matrix structure is known for its strong project or product coordination, flexible use of human resources, and the ability to add or reassign functional specialists as needed. It also facilitates environmental monitoring by allowing for more dynamic responses to changes and challenges.

Question 19

When an organisation improves speed, flexibility and integration by removing the restrictions caused by structures, the likely organisational structure is:

Accepted Answer

The boundaryless structure is designed to remove the traditional barriers between parts of the organization as well as barriers between the organization and the external environment. This structure aims to enhance speed, flexibility, and integration by promoting a more open and fluid organizational setup.

Question 20

In a knowledge management organisation structure, one of the key aspects of the structure is that:

Accepted Answer

Workers from cross-functional organisational areas working together is a key aspect of a knowledge management organisation structure, as it facilitates the sharing and integration of knowledge across different domains.

Quiz 9: Strategic Organisation Structure and Design