UNIT 3 COMPANY STRUCTURE

What is the primary purpose of an organizational structure?

• To maximize employee satisfaction

• To enhance external marketing efforts

• To establish clear roles and relationships within the organization

• To minimize production costs

Answer explanation

The primary purpose of an organizational structure is to define and establish clear roles, responsibilities, and relationships within an organization. It helps ensure that employees know their positions, who they report to, and how they fit into the larger structure.

Which of the following is a characteristic of a functional organizational structure?

• Strong product or geographic divisions

• Project-based teams

• Clear and specialized departmental functions

• A decentralized decision-making process

Answer explanation

A functional organizational structure is characterized by clear and specialized departmental functions. In this structure, departments are organized by their specific functions, such as marketing, finance, or human resources

In a matrix organizational structure, employees report to:

• A single supervisor

• Multiple supervisors

• The CEO

• 
  No one in particular

Answer explanation

In a matrix structure, employees typically report to multiple supervisors. This means they have a dual reporting relationship, often to both a functional manager and a project or product manager.

Which type of organizational structure is characterized by a limited number of management layers and a broad span of control?

• Tall structure

• Flat structure

• Matrix structure

• Hybrid structure

Answer explanation

A flat organizational structure is characterized by a limited number of management layers and a broad span of control. This structure promotes a more direct line of communication and decision-making.

The chain of command in an organizational structure refers to:

• A sequential order of command within the HR department

• The hierarchy of positions and authority in the organization

• The physical layout of the company's offices

• The process of passing on confidential information

Answer explanation

The chain of command in an organizational structure refers to the hierarchy of positions and authority within the organization. It establishes the order in which authority and communication flow through the organization.

Which organizational structure is most suitable for highly innovative and dynamic companies?

• Functional

• Matrix

• Flat

Answer explanation

A matrix organizational structure is most suitable for highly innovative and dynamic companies. It allows for flexibility and collaboration across functional areas and is well-suited for managing complex and rapidly changing projects.

What role does corporate culture play in shaping company structure?

• No role at all

• A minor role

• A significant role

• The only role

Answer explanation

Corporate culture plays a significant role in shaping company structure. The culture of an organization influences how it operates, its values, and its approach to decision-making and management.

What is the term for the number of employees a manager directly supervises within an organization?

• Hierarchy

• Chain of command

• Span of control

• Unity of command

Answer explanation

The term for the number of employees a manager directly supervises within an organization is the "span of control." It refers to the number of subordinates or employees a manager can effectively manage.

In a company with a decentralized organizational structure, decision-making authority is typically:

• Concentrated at the top levels of management

• Distributed across all levels of the organization

• Reserved for a select few employees

• Non-existent

Answer explanation

In a company with a decentralized organizational structure, decision-making authority is typically distributed across all levels of the organization. This empowers employees at various levels to make decisions related to their roles and responsibilities.