Understanding Organizational Structures

What determines the variation in organizational structures of businesses?

• The size, vision, and requirements of the business

• The personal preferences of the CEO

• The color scheme of the business logo

• The location of the business headquarters

What does 'span of control' refer to in an organizational context?

• The duration of a business project

• The geographical area a business covers

• The number of tasks an employee can handle

• The number of employees a manager is responsible for

What does the 'chain of command' indicate in an organizational structure?

• The hierarchy through which communication flows

• The physical layout of company offices

• The sequence of project tasks

• The annual business revenue

Which organizational structure is characterized by many layers of management?

• Flat structure

• Matrix structure

• Hierarchical structure

• Informal structure

What is a major advantage of a hierarchical organizational structure?

• Low management costs

• Quick decision-making

• Clear promotion paths for employees

• Less need for managers

What is a significant disadvantage of the hierarchical structure regarding communication?

• Messages can be distorted as they pass through layers

• Communication is too direct

• Employees are over-informed

• Only top management can communicate

What is a key feature of the span of control in a hierarchical structure?

• Managers control large teams directly

• Unlimited span with global teams

• Managers have a narrow span controlling few subordinates

• All employees report to a single manager

Which structure typically features a short chain of command?

• Global structure

• Matrix structure

• Flat structure

• Hierarchical structure

What is a key benefit of flat organizational structures in terms of costs?

• Lower management salaries

• Increased training costs

• More expenditure on technology

• Higher management salaries

In a flat organizational structure, what is the typical relationship between managers and subordinates?

• No direct interaction

• Many intermediate managers

• Direct and close with few or no levels in between

• Strictly formal with limited contact