What is the primary purpose of an organizational structure?
a) To increase profits
b) To define roles, responsibilities, and relationships
c) To control employees
d) To implement technology
Answer: b) To define roles, responsibilities, and relationships
Which type of organizational structure is characterized by a hierarchy of authority?
a) Matrix structure
b) Functional structure
c) Flat structure
d) Divisional structure
Answer: b) Functional structure
A flat organizational structure is best suited for which type of company?
a) Large multinational corporations
b) Startups and small businesses
c) Bureaucratic organizations
d) Manufacturing firms
Answer: b) Startups and small businesses
What is a defining feature of a matrix organizational structure?
a) Single chain of command
b) Employees reporting to two or more managers
c) Emphasis on geographic locations
d) Elimination of middle management
Answer: b) Employees reporting to two or more managers
Which organizational structure groups employees based on similar skills and tasks?
a) Divisional structure
b) Functional structure
c) Network structure
d) Hybrid structure
Answer: b) Functional structure
What is an advantage of a divisional structure?
a) Improved specialization
b) Enhanced focus on customer needs
c) Centralized decision-making
d) Reduced redundancy
Answer: b) Enhanced focus on customer needs
What is a common challenge of a matrix organizational structure?
a) Lack of flexibility
b) Difficulty in communication
c) Confusion due to dual reporting relationships
d) High employee turnover
Answer: c) Confusion due to dual reporting relationships
Which organizational structure relies heavily on outsourcing and partnerships?
a) Functional structure
b) Network structure
c) Divisional structure
d) Matrix structure
Answer: b) Network structure
What is the primary characteristic of a centralized organizational structure?
a) Decision-making is delegated
b) Decision-making is concentrated at the top levels
c) Employees have greater autonomy
d) Focus on geographic decentralization
Answer: b) Decision-making is concentrated at the top levels
Which structure is often adopted by organizations operating in multiple geographic regions?
a) Divisional structure
b) Functional structure
c) Flat structure
d) Network structure
Answer: a) Divisional structure
A tall organizational structure is characterized by:
a) Few hierarchical levels
b) Wide spans of control
c) Narrow spans of control and multiple management levels
d) High levels of employee autonomy
Answer: c) Narrow spans of control and multiple management levels
What is a disadvantage of a flat organizational structure?
a) Slow decision-making
b) Lack of role clarity
c) High operational costs
d) Excessive bureaucracy
Answer: b) Lack of role clarity
Which organizational structure is best for fostering innovation?
a) Hierarchical structure
b) Matrix structure
c) Flat structure
d) Divisional structure
Answer: c) Flat structure
In a bureaucratic structure, authority is based on:
a) Charisma of the leader
b) Rules and formal systems
c) Personal relationships
d) Market demand
Answer: b) Rules and formal systems
What is a key feature of a hybrid organizational structure?
a) Eliminates hierarchy
b) Combines two or more structural forms
c) Focuses solely on customer needs
d) Centralizes all decision-making
Answer: b) Combines two or more structural forms
Which term refers to the number of employees reporting to a single manager?
a) Chain of command
b) Span of control
c) Organizational hierarchy
d) Division of labor
Answer: b) Span of control
Which of the following is an example of a project-based structure?
a) Functional structure
b) Matrix structure
c) Divisional structure
d) Flat structure
Answer: b) Matrix structure
What is a disadvantage of a functional structure?
a) Lack of specialization
b) Increased operational costs
c) Poor communication between departments
d) Lack of accountability
Answer: c) Poor communication between departments
Which structure allows for quick decision-making at lower levels?
a) Centralized structure
b) Decentralized structure
c) Hierarchical structure
d) Bureaucratic structure
Answer: b) Decentralized structure
What is an advantage of a matrix structure?
a) Simplified reporting relationships
b) Efficient resource allocation across projects
c) Clear decision-making authority
d) Strong departmental focus
Answer: b) Efficient resource allocation across projects
Which structure is most likely to create silos within an organization?
a) Functional structure
b) Network structure
c) Matrix structure
d) Flat structure
Answer: a) Functional structure
What is the focus of a team-based organizational structure?
a) Centralized authority
b) Collaborative decision-making
c) Vertical hierarchy
d) Cost minimization
Answer: b) Collaborative decision-making
Which structure emphasizes flexibility and adaptability?
a) Bureaucratic structure
b) Network structure
c) Tall structure
d) Hierarchical structure
Answer: b) Network structure
What does “division of labor” refer to in organizational structure?
a) Assigning specialized tasks to individuals
b) Rotating job responsibilities
c) Allocating resources across regions
d) Eliminating redundant roles
Answer: a) Assigning specialized tasks to individuals
Which structure typically uses cross-functional teams?
a) Functional structure
b) Divisional structure
c) Matrix structure
d) Bureaucratic structure
Answer: c) Matrix structure
What is the primary goal of decentralization?
a) Reduce employee autonomy
b) Empower lower-level decision-makers
c) Centralize resource allocation
d) Increase control by upper management
Answer: b) Empower lower-level decision-makers
Which organizational structure is best for a rapidly changing environment?
a) Hierarchical structure
b) Network structure
c) Bureaucratic structure
d) Divisional structure
Answer: b) Network structure
What is a potential disadvantage of decentralization?
a) Delayed decision-making
b) Reduced efficiency in local decisions
c) Lack of coordination across the organization
d) Limited autonomy for employees
Answer: c) Lack of coordination across the organization
What is an advantage of a centralized structure?
a) Faster decision-making at all levels
b) Consistent decision-making aligned with organizational goals
c) Greater autonomy for employees
d) Improved flexibility and adaptability
Answer: b) Consistent decision-making aligned with organizational goals
Which structure supports innovation by reducing hierarchical barriers?
a) Flat structure
b) Bureaucratic structure
c) Functional structure
d) Divisional structure
Answer: a) Flat structure