Organizational Charts & Structure

1. A CEO wants to improve coordination between the marketing and product development teams. Which type of organizational structure would best facilitate cross-department collaboration?

• A. Team-based structure, to focus solely on project groups.

• B. Matrix structure, to allow employees to work across different teams.

• C. Network structure, to outsource product development.

• D. Flat structure, to eliminate management layers.

2. A growing company is struggling with slow decision-making and excessive management layers. Which organizational structure should they consider to improve efficiency?

• A. Hierarchical structure, to centralize decision-making from the top management going towards the bottom.

• B. Flat structure, to reduce hierarchy and encourage faster communication.

• B. Network structure, to promote external partnerships.

• D. Divisional structure, to create independent business units.

3. In a hospital, the administration follows a rigid chain of command where all decisions go through multiple layers of authority. Which organizational structure does this describe?

• A. Decentralized structure

• B. Bureaucratic structure

• C. Matrix structure

• D. Functional structure

4. A startup wants to maintain flexibility and encourage innovation. Which type of organizational structure would be most suitable?
A. Functional structure, to promote specialization.
B. Bureaucratic structure, to ensure clear rules and control.
C. Divisional structure, to focus on different product lines.
D. Flat structure, to promote quick decision-making and creativity.

• A. Network structure, to rely on external partnerships.

• B. Matrix structure, to enhance collaboration across departments.

• C. Hierarchical structure, to establish a clear chain of command.

• D. Flat structure, to promote quick decision-making and creativity.

5. A multinational company organizes its employees based on geographic regions such as North America, Europe, and Asia. What type of organizational structure does this represent?

• C. Divisional structure
• G. Hierarchical structure
• F. Product-based structure
• E. Team-based structure

6. A new company wants an organizational chart that clearly shows reporting relationships and departmental responsibilities. What is the primary purpose of this chart?

• A. To create confusion among employees.

• B. To promote competition between departments.

• C. To outline the company's financial goals.

• D. To clarify roles, responsibilities, and lines of authority.

7. An organization follows a functional structure where employees work in specialized departments. What is a potential disadvantage of this structure?

• A. Employees have too many responsibilities across departments as they are liable to any tasks that may be left unattended.

• B. It encourages excessive teamwork, leading to confusion among workers who are less competent with what they are assigned with.

• C. Employees may have difficulty adapting to new technologies.

• D. Departments may become isolated, reducing collaboration between teams.

8. A company’s new organizational chart places customer service, sales, and product design under separate managers. What does this indicate about the structure?

• A. It is a hierarchical structure with a single reporting line such as the manager being the sole head of the organization.

• B. It centralizes all functions under one manager for efficiency such as the over-all manager assigned for all the departments.

• C. It is likely a divisional structure, grouping teams based on function.

• D. It follows a flat structure with equal authority among teams.

9. A CEO wants to implement an organizational structure where employees report to both a department head and a project manager. What is a key challenge of this structure?

• A. Employees may face conflicting instructions from multiple managers.

• B. It simplifies decision-making by reducing the need for hierarchy as bosses are too narrow minded to accept opinion and suggestions.

• C. It removes the need for cross-department collaboration for not all task can be distributed equally.

• D. It eliminates the need for specialized roles.

10. Which principle should be considered when designing an organizational chart for a rapidly scaling business?

• A. The chart should remain rigid to prevent frequent updates.

• B. The structure should have as many layers as possible to ensure control.

• C. The design should be flexible to accommodate growth and changes.

• D. The chart should be as complex as possible to reflect all job functions.