Understanding Organizational Structures

Why is understanding organizational structures crucial for businesses?

• To understand the competition

• To ensure high profits

• To simplify hiring processes

• To clarify roles and responsibilities

What is a characteristic feature of a flat organizational structure?

• Complex decision-making process

• Narrow span of control

• Many layers of management

• Short chain of command

Which structure is likely to have fewer layers of management?

• Hierarchical

• Flat

• Matrix

• Divisional

Which structure typically has a long chain of command?

• Flat structure

• Network structure

• Tall structure

• Matrix structure

What does a narrow span of control indicate?

• A manager supervises many employees

• A manager supervises few employees

• The company has no clear structure

• The company is likely to fail

In the Getaways case study, who reports directly to the CEO?

• The Managing Director

• The Head of Sales

• The Operations Director

• The Finance and HR Director

What is a key advantage of tall organizational structures?

• Faster decision-making

• Clear career progression

• Lower management costs

• Simpler communication channels

Why might tall structures have clear lines of responsibility?

• Because of their informal communication

• Due to many layers of management

• Because they have a flat hierarchy

• Due to their small size

What can be a disadvantage of tall structures in terms of communication?

• Too transparent

• Too slow

• Too informal

• Too direct

What is a potential cost-related disadvantage of tall structures?

• Higher management salaries

• Increased advertising expenses

• Decreased productivity

• Higher employee satisfaction