IB Business Management - 2.2 - Organisation Structures Quiz

Delegation is best defined as:

• Removing layers of management to flatten an organization

• Empowering someone lower down the hierarchy by passing on decision-making authority

• Spreading decision-making authority across departments

• The formal rules and procedures that govern business activity

Which statement about delegation is correct?

• The person delegating no longer holds responsibility for the outcome

• The senior person remains accountable even when authority is delegated

• Delegation eliminates the need for a chain of command

• Delegation always reduces efficiency

Span of control refers to:

• The number of management levels in an organization

• The formal line of authority in the hierarchy

• The number of subordinates directly accountable to a manager

• The amount of authority managers delegate

A manager with a wide span of control has:

• Fewer people reporting directly to them

• More people reporting directly to them

• A narrow chain of command

• Less authority in the hierarchy

Levels of hierarchy in a business show:

• The number of formal authority layers in the organization

• The number of product divisions in the firm

• The span of control of managers

• The level of bureaucracy within the business

The chain of command represents:

• The empowerment of lower-level employees

• The formal line of authority through which communication and orders are passed

• The number of layers in an organization

• The degree of bureaucracy in a business

Bureaucracy in a business refers to:

• Informal communication systems

• The official administrative rules and standardized procedures that govern activities

• Delegating tasks to subordinates

• Removing levels of management

Centralization occurs when:

• Authority is widely shared across the organization

• Senior leadership holds the majority of decision-making power

• Authority and responsibility are spread to lower levels

• Employees make all operational decisions

Decentralization means:

• Decision-making authority is shared with others in the organization

• All decisions are made by top-level managers

• Bureaucratic rules govern decision-making

• The hierarchy is removed entirely

De-layering is:

• Adding more levels to the hierarchy

• The process of removing management layers to flatten the organization

• Increasing bureaucracy to improve efficiency

• Structuring by region instead of function