Company Structure

What is the purpose of organizational hierarchy in a company?

• To define roles, responsibilities, and reporting relationships for clear communication, efficient decision-making, and accountability.

• To eliminate all levels of authority and decision-making

• To promote inefficiency and lack of accountability

• To create confusion and chaos within the company

Name three functional departments commonly found in a company.

• 1. Human Resources (HR) 2. Marketing 3. Finance

• Research and Development

• Sales

• Customer Service

Explain the concept of chain of command in an organization.

• The concept of chain of command in an organization refers to the hierarchical structure of authority, where each level is accountable to the one directly above it. It ensures clear lines of communication, decision-making, and accountability.

• In a chain of command, employees can bypass their immediate supervisor and report directly to the CEO.

• Chain of command means that everyone in the organization has equal authority and decision-making power.

• The concept of chain of command in an organization is about creating chaos and confusion by having multiple people in charge.

What is a matrix structure and how does it differ from traditional organizational structures?

• Matrix structure and traditional organizational structures have no differences

• In a matrix structure, employees report to only one manager

• A matrix structure differs from traditional organizational structures by having employees report to more than one manager, typically functional and project managers.

• A matrix structure is the same as traditional organizational structures

Discuss the differences between centralization and decentralization in a company.

• Centralization involves horizontal decision-making, while decentralization involves vertical decision-making

• Centralization results in faster response time, while decentralization results in slower response time

• Centralization leads to higher employee empowerment, while decentralization leads to lower employee empowerment

• Centralization involves decision-making authority at the top levels of management, while decentralization involves delegation of decision-making authority to lower levels of the organization.

Define span of control and its significance in organizational structure.

• Span of control is irrelevant in organizational structure

• Span of control is the number of employees a manager can hire

• Span of control is the level of control a manager has over their subordinates

• Span of control is the number of subordinates a manager can effectively supervise. It is significant in organizational structure as it determines the level of management and the distribution of authority within the organization.

How does a team differ from a functional department in a company?

• A team is focused on individual performance, while a functional department is focused on team performance.

• A team is a cross-functional group working towards a common goal, while a functional department is a group of individuals with similar skills working within the same area of the company.

• A team is a hierarchical structure within the company, while a functional department is a flat organizational structure.

• A team is a group of individuals with similar skills working within the same area of the company, while a functional department is a cross-functional group working towards a common goal.

What are the advantages of a tall organizational structure?

• Limited opportunities for employee growth and development

• Difficulty in adapting to changes and innovation

• Increased bureaucracy and slower decision-making

• The advantages of a tall organizational structure include clear communication and control, specialization, and career advancement opportunities.

What are the disadvantages of a flat organizational structure?

• Decreased employee motivation and engagement

• Difficulty in coordinating and managing large teams

• Increased potential for conflicts and power struggles

• Disadvantages of a flat organizational structure include lack of clear hierarchy, decision-making authority, confusion, inefficiency, limited opportunities for career advancement and professional development.

Explain the concept of line authority in the context of company structure.

• Line authority in company structure refers to the direct superior-subordinate relationship within the organizational hierarchy, allowing for clear lines of communication and decision-making.

• Line authority is the authority given to staff members to oversee multiple departments within the company.

• Line authority is the power given to employees to make decisions without consulting their superiors.

• Line authority refers to the use of straight lines in organizational charts to represent the chain of command.