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Worksheets2.5.1 - Organisational structures (Part A)
Total questions: 13
Worksheet time: 7mins
Which of the following is the term used to describe a business where key decisions are made at head office?
Hierarchical organisational structure
Flat organisational structure
Centralised business
Decentralised business
Which of the following is a feature of a flat organisational structure?
Rigid rules
A more flexible approach to decision making
Many levels in the hierarchy
More promotional opportunities for employees
Which of the following organisations is most likely to have a hierarchical organisational structure?
An accountancy firm with two partners and ten employees
A mobile hairdressing business with two employees
A sole trader plumber who works alone
A chocolate manufacturer with 250 employees
In which of the following situations would decentralisation be the most appropriate?
When directors wish to keep a tight control on all areas of decision-making within the organisation
When standardisation of products and outlets is required
When the business wants to give local managers more authority to make key decisions
When a strong corporate image is important to business success
Which of the following is an advantage of a centralised business?
Decision making is consistent across the organisation
Increased motivation amongst junior managers
Reduces the pressure on senior managers
Increased staff involvement in the decision making process
Which of the following organisations is most likely to be decentralised?
A hotel chain that aims to solve customer complaints in any of its hotels immediately
A national fast food chain that prides itself on consistent levels of customer service across all of its outlets
A national clothes retailer that wants to offer customers the same product range in all branches and benefit from bulk buying stock
A chain of coffee shops that aims to offer the same experience to customers regardless of the outlet visited
Which of the following is a benefit to a business of having a hierarchical organisational structure?
There will be a flexible approach to decision making
More responsibility is given to employees lower down the hierarchy
Communication is likely to be faster
More promotion opportunities available for staff
Which of the following best describes the term decentralisation?
The business is organised into different functional areas
Key decisions are made by a small number of senior staff
The business is geographically widespread
Junior managers are given authority to make important decisions
Which of the following situations would be most suited to a hierarchical organisational structure?
An established sole trader organisation with three employees
Where the business needs to make quick decisions involving all staff
Where managers wish to keep a tight control over their staff
A new business start-up with five staff members
Which of the following is a key feature of centralisation?
Major decisions are made by a small number of senior staff
Major decisions are made by junior staff
Delegation is actively used in the organisation
Branch managers have full decision making power
Which of the following is an advantage to a business of deciding to decentralise its organisation?
Key decisions are made by a small number of senior staff
Junior staff can be developed for senior roles
Minimal training will be required to develop junior staff in their roles
Different branches will always run consistently
Which two of the following are disadvantages of centralisation?
Decisions may not be in line with the overall business aims
Increased cost of training
Inconsistent decision making across the organisation
The business may not respond quickly to changes in local conditions
Low levels of motivation amongst junior managers
Which two of the following are most likely to be met by a centralised approach to decision making?
Consistent levels of customer service across all branches
Ability to adapt to local market conditions quickly
Fast decision making at branch level
Quality levels across all outlets are the same
Junior managers are actively involved in the decision making process
