Gr12 IB BM - 2.2 Org Structure

Different approaches to structuring an organization can include divisions according to:

• Product, Function and/or Region

• Name, age, and/or nationality

• Process, hierarchy, and/or orientation

• Gender, product, and/or years employed

Answer explanation

Typical approaches to creating divisions or departments in organisations include product divisions (soft drinks, juices, mineral water for a beverage company), regional divisions (Europe, South America, North Africa), and functional divisions (finance and accounting, marketing, HR, etc). The other choices may in some cases factor into structural divisions, but none as much as product, function or region. 

Which of the following organizational structures limits opportunities for employee advancement within the company or organization?

• Flat Structure

• Pyramidal structures

• Tall Structure

• Hierarchical structures

Answer explanation

A flat structure has few layers of management, and therefore offers fewer opportunities for employees to advance to higher ranks of authority. This is in contrast to a tall structure with several layers of hierarchy, where employees can advance towards successively higher levels of senior management. 

TRUE OR FALSE?

Bureaucratic organizations are often fast to respond to changes in the external environment.

• True

• False

KEY TERM: The situation where decision-making is predominantly made by a very small group of senior managers at the top of the organizational hierarchy.

• Centraliztion

• Decentralization

• Delayering

• Management Information System (MIS)

From this organization chart, identify the number of levels in the hierarchy.

• 1

• 5

• 13

• 64

Key Term: What occurs when a line manager entrusts and empowers a subordinate with authority to successfully complete a particular task?

• Decentralization

• Delegation

• Delayering

• Demarcation

The Business Management Internal Assessment assessed using 7 assessment criteria, which area is not an assessed?

• Supporting documents

• Analysis and evaluation

• Selection and application of tools and theories

• Reflection

True or False

Delayering is the same as Redundancies.

The employee will lose their job.

• True

• False

Answer explanation

Do not confuse delayering is not the same as redundancies, although they can be linked to one another. Delayering does not necessarily cause job losses as people can simply be redeployed to other positions or roles in the organization.

Which of the following is not 1 of the 4 reasons reasons for resistance to change in the workplace:

• Self-interest

• • Misinformation and misunderstanding

• Increased job security

• Resistance to change

Answer explanation

Increased job security, as it's not a common reason for resistance to change in the workplace. The others are key reasons people resist change.

KEY TERM

Definition: The extent to which a person is held responsible for the success or failure of a task, job, or project. It allows senior managers to have better control over the running of their organizations.

• Empowerment

• Leadership

• Accountability

• Span of Control