Understanding Organisational Structures

What is an organisational structure?

• A type of building design

• A system that outlines how activities are directed to achieve the goals of an organisation

• A method of cooking

• A type of computer software

Which of the following is a characteristic of a hierarchical organisational structure?

• Everyone has the same level of authority

• There are multiple levels of authority

• There are no managers

• Decisions are made by everyone equally

What is a flat organisational structure?

• A structure with many levels of management

• A structure with few or no levels of middle management

• A structure that is shaped like a pyramid

• A structure that is only used in small companies

In a matrix organisational structure, employees report to:

• Only one manager

• Multiple managers

• No managers

• The CEO directly

What is a centralised organisational structure?

• Decision-making is concentrated at a single point in the organisation

• Decision-making is spread out across the organisation

• There are no decisions made

• Decisions are made by external consultants

Which of the following is an advantage of a decentralised organisational structure?

• Faster decision-making

• More control for top management

• Less employee involvement

• More bureaucracy

What is a disadvantage of a hierarchical organisational structure?

• Clear chain of command

• Slow decision-making process

• High employee morale

• Flexible roles

Which organisational structure is known for having flexible roles and responsibilities?

• Hierarchical

• Flat

• Matrix

• Centralised

In a flat organisational structure, communication is typically:

• Slow and formal

• Fast and informal

• Non-existent

• Only through written reports

What is one disadvantage of a flat organisational structure?

• High levels of bureaucracy

• Overwhelmed managers due to wide span of control

• Slow communication

• High costs of management