Understanding Organisational Structures

What is an organisational structure?

• A system used to define a company's hierarchy

• A method for calculating employee salaries

• A type of financial report

• A marketing strategy

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

• Few levels of management

• Many levels of management

• No levels of management

• Circular management

In a flat organisational structure, the span of control is typically:

• Narrow

• Wide

• Non-existent

• Circular

What does the term "chain of command" refer to in an organisation?

• The sequence of authority from top to bottom

• The sequence of product delivery

• The sequence of financial transactions

• The sequence of marketing strategies

Which of the following best describes "span of control"?

• The number of subordinates a manager directly supervises

• The number of products a company sells

• The number of departments in a company

• The number of locations a company operates in

Delegation of authority involves:

• Assigning tasks to subordinates without any responsibility

• Transferring responsibility and authority to subordinates

• Removing all authority from subordinates

• Centralising all decision-making

Which of the following is a disadvantage of a flat organisational structure?

• Slow decision-making process

• Overburdened managers

• High costs due to many levels of management

• Lack of employee motivation

In a hierarchical structure, communication is typically:

• Fast and direct

• Slow and indirect

• Non-existent

• Circular

Which of the following is a benefit of effective communication channels in an organisation?

• Increased misunderstandings

• Improved employee morale

• Decreased productivity

• Higher employee turnover

What is a potential drawback of a narrow span of control?

• Managers have too many subordinates

• Managers have too few subordinates

• Increased autonomy for employees

• Faster decision-making