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WorksheetsIB Business Management - 2.2 - Organisation Structures Quiz
Total questions: 25
Worksheet time: 8mins
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
A matrix structure refers to:
A rigid hierarchy with many layers
Temporary collaboration of staff from different departments on a project
Organizing by function, such as marketing and finance
Reducing management layers
A flat/horizontal structure is characterized by:
Many layers of hierarchy and narrow spans of control
Few layers of hierarchy and wide spans of control
Strong centralization of authority
High levels of bureaucracy
A tall/vertical structure typically means:
Wide spans of control and quick communication
Few layers in the hierarchy
Many layers of hierarchy and narrow spans of control
Weak chains of command
Which is a key feature of a hierarchical structure?
Informal communication replaces authority
A ranking system with different levels of authority and responsibility
No clear lines of accountability
Workers are grouped by projects only
Organization by function refers to:
Structuring based on business tasks such as marketing, HR, and finance
Dividing the business into product categories
Organizing by geographic areas
Creating cross-functional project teams
Organization by product means:
Each product line forms a separate department focusing on its market
Employees are grouped by specialized business functions
Staff are grouped based on geographic areas
Authority is delegated to employees across departments
Organization by region refers to:
Grouping employees by function, e.g., HR or marketing
Structuring according to product lines
Structuring according to geographical areas of operation
Removing management layers to flatten the hierarchy
Larger firms are more likely to adopt a tall structure because:
It reduces bureaucracy
It suits more formalized and controlled operations
It eliminates communication barriers
It widens span of control
Businesses with highly skilled employees are more likely to use:
Tall, bureaucratic structures
Flat, informal structures
Centralized decision-making
Rigid hierarchies
A centralized structure may be more appropriate when:
A company operates in a highly innovative industry
Quick decision-making by top leadership is required
Managers want to empower lower-level staff
The organization is geographically dispersed
A decentralized structure is most suitable when:
Local responsiveness and empowerment are important
Bureaucracy needs to be strengthened
The business faces low competition and stability
All decisions must come from the CEO
In a fast-changing external environment, firms often benefit from:
Bureaucratic and centralized structures
Flat and flexible structures
More levels of hierarchy
Increased centralization
Which organizational structure best suits a business with diverse products?
By region
By product
By function
Tall/vertical
Which organizational structure best suits a multinational company?
By product
By region
By function
Flat/horizontal
Which factor would most likely push a company to flatten its structure through de-layering?
Need for quicker communication and cost reduction
Growth into new global markets
Increasing bureaucracy to control operations
Expanding into multiple product lines
