Understanding Organisational Structures

What does the term 'organising' refer to in a business context?

• The method of conducting market research to understand customer needs.

• The act of hiring new employees for a company.

• The process of arranging resources and tasks to achieve organizational goals.

• The strategy of increasing product prices to boost profits.

Describe the traditional line structure of an organisation.

• A flat structure with no defined authority levels.

• A circular structure promoting equal communication among all members.

• A matrix structure where employees report to multiple managers.

• A hierarchical structure with clear lines of authority and communication flowing from top to bottom.

What are the advantages of a line and staff organisational structure?

• Increased bureaucracy

• Advantages include clear authority lines, specialized support, improved decision-making, enhanced communication, and flexibility.

• Limited communication between departments

• Lack of clear authority lines

Explain the functional organisational structure.

• A functional organizational structure is based on geographical locations.

• A functional organizational structure focuses solely on profit maximization.

• A functional organizational structure eliminates all departments and functions.

• A functional organizational structure is a system where the organization is divided into departments based on specialized functions.

How does a modern functional structure differ from a traditional one?

• A traditional structure encourages more teamwork than a modern one.

• A modern functional structure has fewer departments than a traditional one.

• A modern functional structure is more flexible and collaborative, while a traditional one is hierarchical and rigid.

• A modern functional structure is always more expensive than a traditional one.

What is a product-based organisational structure?

• A product-based organizational structure organizes teams around specific products, allowing for focused management and accountability.

• A product-based organizational structure is centered around geographical locations.

• A product-based organizational structure focuses solely on employee roles.

• A product-based organizational structure eliminates the need for product management teams.

Define a project-based organisational structure.

• A project-based organisational structure is focused solely on individual performance.

• A project-based organisational structure is an arrangement where teams are formed around specific projects, focusing on project goals and collaboration.

• A project-based organisational structure is designed for long-term stability and routine tasks.

• A project-based organisational structure is a hierarchy with fixed roles and responsibilities.

What are the key features of a matrix organisational structure?

• Strict hierarchical structure

• Limited communication channels

• Single reporting relationships

• Key features of a matrix organizational structure include cross-functional teams, dual reporting relationships, shared resources, flexibility, and enhanced communication.

How does a geographic organisational structure operate?

• A geographic organizational structure focuses solely on product lines.

• A geographic organizational structure is based on employee skill sets.

• A geographic organizational structure eliminates the need for management.

• A geographic organizational structure divides a company based on geographical areas, allowing for localized management and operations.

What is a divisional organisational structure and when is it used?

• A divisional organisational structure is used by small startups with limited products.

• A divisional organisational structure is used by large companies with diverse markets or product lines.

• A divisional organisational structure is only applicable to non-profit organizations.

• A divisional organisational structure is focused solely on employee management.