Quiz on Types of Organizational Structure

What is an organizational structure?

• A set of rules for employees

• A system defining how activities are directed to achieve organizational goals

• A financial strategy for the company

Which structure lacks social controls and is used for simple tasks?

• Pre-bureaucratic structure

• Hierarchical structure

• Divisional structure

What is a major disadvantage of bureaucratic structures?

• Encourages innovation

• Discourages creativity

• Promotes team-based work

In a hierarchical organizational structure, who is at the top?

• Employees

• Board of directors

• Project managers

What is a major advantage of a functional organizational structure?

• Enhances interdepartmental communication

• Encourages specialization

• Promotes flat management

What is a common characteristic of a divisional organizational structure?

• Organized by employee skill

• Divided into regions, markets, or products

• Flat with no hierarchy

Which type of organizational structure groups employees by both function and product?

• Functional structure

• Matrix structure

• Network structure

What is one key advantage of a flat or horizontal structure?

• Strong hierarchy

• Greater employee responsibility

• Complex reporting system

Which structure is known for having employees placed in both inner and outer rings?

• Matrix structure

• Circular structure

• Divisional structure

What is a disadvantage of the team-based structure?

• Clear promotional path

• Minimal management

• Unclear promotional path