IB Business 2.2 Organizational Structure

What does "span of control" refer to in an organization?

• The number of departments in a business

• The number of employees one manager is responsible for

• The number of shareholders involved in decision-making

• The amount of power held by the CEO

Which of the following best describes a flat organizational structure?

• Many levels of hierarchy and narrow span of control

• Few levels of hierarchy and wide span of control

• Delegated authority with centralized decision-making

• Many departments working in isolation

What is the main purpose of an organizational chart?

• To track employee salaries

• To show the marketing plan of a business

• To outline the roles, responsibilities, and relationships in a business

• To report financial performance

Which of the following is a disadvantage of a tall organizational structure?

• Poor communication between levels

• Lack of clear authority

• Too much delegation

• Weak leadership

What is delegation?

• Replacing middle managers with technology

• Transferring authority to subordinates to carry out tasks

• Hiring new managers to reduce workload

• Centralizing all decision-making

A company using centralized decision-making is likely to:

• Allow employees at all levels to make decisions

• Have inconsistent decision-making

• Make faster decisions at the top level

• Rely on external consultants for decisions

What is the effect of delayering in an organization?

• It increases bureaucracy

• It reduces the number of management levels

• It creates more job titles

• It strengthens the chain of command

In a matrix structure, employees:

• Report only to their functional manager

• Work independently on repetitive tasks

• Report to both functional and project managers

• Do not have defined job roles

A wide span of control typically leads to:

• Closer supervision

• Higher communication costs

• Greater employee autonomy

• Increased delegation complexity

Which of the following is an advantage of a decentralized structure?

• Inflexible decision-making

• Reduced innovation

• Greater responsiveness to local conditions

• Strong control by top management