FIB TOPIC 5

What is an organizational structure?

• A formal document for employees to discuss with colleagues

• A structured method of understanding who completes projects

• A formal framework of business which shows how management is linked

• A communication strategy issued by the company

In a consulting firm using a matrix structure, employees often receive conflicting instructions from project managers and finance executives.

What is the most likely issue arising from this structure?

• Poor communication

• Dual authority

• Role clarity

• Lack of accountability

What is a disadvantage of hierarchical organisational structures?

• vague career pathway

• not clear which employees report to who

• does not define authority levels

• likely to be one-way communication

A narrow span of control indicates a manager has many subordinates.

• TRUE

• FALSE

___ shows the path to which instruction is passed down through the organization.

• Span of control

• Unity of command

• Chain of command

• Matrix principle

The passing of authority and tasks from higher level to lower level in organization is called:

• Delegation

• Bias

• Chain of Command

• Span of Control

Removing one or few layers from a hierarchy in organization is called …

A formal position of manager who is hired to give specialist advice such as regarding market research or economic changes.

• Line manager

• Research manager

• Assistant manager

• Staff manager

In a Nike retail chain, all pricing decisions are made by the head office, and store managers have no authority to change prices. This reflects:

• Delegation

• Decentralization

• Centralization

• Matrix management

A manufacturing company allows factory managers to make decisions regarding production schedules, hiring, and sourcing local supplies. This practice indicates:

• Informal organization

• Decentralization

• Some delegation

• Staff authority