Understanding Organizational Structures in Business

The video tutorial explores different organizational structures, including hierarchical and flat structures, and their impact on business operations. It discusses the roles and responsibilities within these structures, the career paths they offer, and the decision-making processes involved. The tutorial also compares centralized and decentralized structures, highlighting their advantages and disadvantages in various business contexts.

What is the primary purpose of an organizational structure in a business?

• To reduce the number of departments

• To define roles and responsibilities

• To eliminate executive power

• To increase the number of employees

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

• Decentralized decision-making

• High employee turnover

• Few layers of management

• Clearly defined progression routes

What is a potential disadvantage of a hierarchical structure?

• Lack of career progression

• Unclear roles and responsibilities

• Limited communication channels

• Excessive bureaucracy

How does a flat structure benefit smaller businesses?

• By increasing the number of managers

• By reducing bureaucracy

• By creating more departments

• By centralizing decision-making

What is a drawback of a flat organizational structure?

• Larger span of control for managers

• Excessive management layers

• Limited employee motivation

• Slow decision-making process

What was the aim of Tesco's restructuring in 2021?

• To streamline decision-making processes

• To increase the number of managerial positions

• To expand their head office

• To create more hierarchical layers

What is a centralized organizational structure?

• A structure where local branches make all decisions

• A structure with no head office

• A structure where decisions are made at the head office

• A structure with no defined roles

How does a decentralized structure empower employees?

• By limiting their decision-making power

• By centralizing all decisions

• By allowing local branches to make decisions

• By reducing their responsibilities

Which structure is more likely to adapt quickly to local market conditions?

• Centralized structure

• Flat structure

• Hierarchical structure

• Decentralized structure

Why is it important for businesses to adapt their organizational structure?

• To increase the number of employees

• To maintain consistency across all branches

• To meet changing market conditions

• To eliminate all management positions