Organizational Structure: A Comprehensive Guide for Management Students

Question 1

In a matrix structure, which type of power is generally considered to be the most influential?

Accepted Answer

Expert power

Answer

Referent power

Answer

Legitimate power

Answer

Reward power

Question 2

Decentralization is more likely to lead to:

Accepted Answer

Enhanced customer satisfaction

Answer

Reduced innovation

Answer

Increased employee turnover

Answer

Lower organizational efficiency

Question 3

In a decentralized organizational structure, decision-making authority is primarily delegated to:

Accepted Answer

Middle and lower-level managers

Answer

Top-level management exclusively

Answer

All employees within the organization

Answer

External stakeholders, such as shareholders

Question 4

Which of the following is a key advantage of implementing a functional organizational structure?

Accepted Answer

Enhanced specialization and expertise within departments

Answer

Improved communication and coordination across the organization

Answer

Increased flexibility and adaptability to changing market conditions

Answer

Reduced overall operational costs

Question 5

A matrix organizational structure is characterized by combining elements of which two other organizational structures?

Accepted Answer

Functional and divisional

Answer

Divisional and bureaucratic

Answer

Functional and bureaucratic

Answer

Divisional and matrix

Question 6

Which of the following is a defining characteristic of a centralized organizational structure?

Accepted Answer

Authority is concentrated at the top levels of management.

Answer

Employees have significant autonomy in decision-making.

Answer

Communication primarily flows horizontally between departments.

Answer

Decision-making is rapid and efficient.

Question 7

The chain of command in an organizational structure refers to:

Accepted Answer

The hierarchical structure of authority relationships.

Answer

The flow of information and communication.

Answer

The allocation of tasks and responsibilities.

Answer

The process of performance evaluation.

Question 8

In a tall organizational structure, the number of:

Accepted Answer

Management levels is high, resulting in limited employee autonomy.

Answer

Management levels is low, leading to high employee autonomy.

Answer

Employees reporting to each manager is high.

Question 9

A common criticism of matrix organizational structures is:

Accepted Answer

Increased potential for conflict and confusion.

Answer

Difficulty in coordinating activities effectively.

Answer

Slow and inefficient decision-making.

Answer

High levels of employee stress.

Question 10

For large organizations with diverse product lines, the most appropriate organizational structure is:

Accepted Answer

Divisional

Answer

Centralized

Answer

Decentralized

Answer

Functional

Question 11

The process of dividing an organization into smaller units based on specific functions or activities is referred to as:

Accepted Answer

Departmentalization

Answer

Centralization

Answer

Span of control

Answer

Chain of command

Question 12

In a functional organizational structure, employees are grouped together primarily based on their:

Accepted Answer

Job functions

Answer

Skills and expertise

Answer

Departmental affiliations

Answer

Geographic locations

Question 13

Which type of organizational structure aims to strike a balance between centralized control and decentralized decision-making?

Accepted Answer

Matrix

Answer

Hierarchical

Answer

Flat

Answer

Organic

Question 14

The number of individuals that a manager can effectively supervise and manage is known as their:

Accepted Answer

Span of control

Answer

Chain of command

Answer

Unity of command

Answer

Delegation

Question 15

In a matrix organizational structure, which feature is distinctive?

Accepted Answer

Employees report to multiple supervisors.

Answer

Decision-making is solely in the hands of top management.

Answer

Communication follows a strict hierarchical structure.

Answer

Departmental responsibilities are strictly separated.

Question 16

What is the primary basis for organizing units in a functional organizational structure?

Accepted Answer

Functions or expertise

Answer

Product or service lines

Answer

Geographic regions

Answer

Customer types

Question 17

Which disadvantage is commonly associated with matrix organizational structures?

Accepted Answer

Role ambiguity and conflicts

Answer

Slow decision-making

Answer

Increased costs

Answer

Lack of clear lines of authority

Question 18

In a divisional organizational structure, each division is primarily responsible for:

Accepted Answer

A specific product or service line

Answer

A specific geographic region

Answer

A specific function or expertise

Answer

All of the organization's operations

Question 19

Which type of organizational structure is characterized by flexibility, adaptability, and minimal bureaucracy?

Accepted Answer

Organic

Answer

Mechanistic

Answer

Tall

Answer

Flat

Question 20

Which principle is central to mechanistic organizational structures?

Accepted Answer

Standardization and formalization

Answer

Employee empowerment

Answer

Customer focus

Answer

Innovation

Question 21

Which type of organizational structure has relatively few levels of management and wide spans of control?

Accepted Answer

Flat

Answer

Tall

Answer

Centralized

Answer

Decentralized

Question 22

Which of the following is a common challenge faced by organizations during restructuring?

Accepted Answer

Resistance to change

Answer

Increased employee satisfaction

Answer

Enhanced communication efficiency

Answer

Improved decision-making processes

Question 23

In a matrix organizational structure, who is responsible for coordinating and managing projects?

Accepted Answer

Project managers

Answer

Functional managers

Answer

Divisional managers

Answer

Top executives

Question 24

Which organizational structure empowers employees with greater autonomy and decision-making authority, potentially boosting their motivation and job satisfaction?

Accepted Answer

Decentralized

Answer

Centralized

Answer

Functional

Answer

Divisional

Question 25

Which organizational structure is best suited for a company operating in several geographical locations?

Accepted Answer

Divisional structure

Answer

Matrix structure

Answer

Flat structure

Question 26

A company implementing a matrix structure is likely to have:

Accepted Answer

Enhanced flexibility and innovation

Answer

Distinct lines of authority

Answer

Reduced communication barriers

Question 27

Which of the following is NOT a benefit of a flat organizational structure?

Accepted Answer

Clear career paths

Answer

Reduced bureaucracy

Answer

Improved communication

Answer

Increased employee empowerment

Question 28

Which of the following is a potential advantage of a centralized organizational structure?

Accepted Answer

Improved coordination and control

Answer

Increased flexibility

Answer

Empowerment of lower-level employees

Answer

Faster decision-making

Question 29

Which of the following is **not** an essential component of organizational structure?

Accepted Answer

Organizational culture

Answer

Span of control

Answer

Chain of command

Answer

Division of labor

Question 30

A functional organizational structure groups employees primarily based on:

Accepted Answer

Their specialized skills and expertise

Answer

Geographic regions

Answer

Product or service lines

Answer

Customer types

Question 31

In a matrix organizational structure, employees have reporting relationships to:

Accepted Answer

More than one superior

Answer

No superiors

Answer

Only one superior

Answer

Their peers

Question 32

A potential advantage of a tall organizational structure is:

Accepted Answer

Clearly defined lines of authority

Answer

Reduced communication channels

Answer

Enhanced flexibility

Answer

Accelerated decision-making

Question 33

The span of control refers to the:

Accepted Answer

Number of subordinates directly reporting to a manager

Answer

Span of influence of middle management

Answer

Control exerted by senior management

Answer

Degree of autonomy granted to employees

Question 34

Which organizational structure is generally most appropriate for a rapidly changing environment?

Accepted Answer

Organic

Answer

Functional

Answer

Matrix

Answer

Mechanistic

Question 35

A centralized decision-making process in an organization typically results in:

Accepted Answer

Slower decision-making

Answer

Faster decision-making

Answer

Increased employee empowerment

Answer

Improved decision quality

Question 36

A potential negative consequence of an ineffective organizational structure can be:

Accepted Answer

Inefficient communication

Answer

Improved customer satisfaction

Answer

Increased productivity

Answer

High employee morale

Question 37

The organizational chart of a company primarily illustrates its:

Accepted Answer

Reporting relationships and structure

Answer

Market share

Answer

Financial performance

Answer

Mission and vision

Question 38

When designing an organizational structure, a key consideration should be the:

Accepted Answer

Organization's strategic objectives

Answer

Number of employees in the organization

Answer

Industry in which the organization operates

Answer

Location of the organization's headquarters

Question 39

Which organizational structure centralizes decision-making authority at the top of the organization?

Accepted Answer

Functional Structure

Answer

Divisional Structure

Answer

Matrix Structure

Answer

Team-Based Structure

Question 40

A company with various product lines operating separately would be best suited to which organizational structure?

Accepted Answer

Divisional Structure

Answer

Functional Structure

Answer

Matrix Structure

Answer

Network Structure

Question 41

Which of the following best describes the defining characteristic of a matrix structure?

Accepted Answer

Dual reporting lines based on both functional and project-based responsibilities

Answer

Clear hierarchical reporting structure

Answer

High level of decentralization

Question 42

Which factor does NOT typically influence an organization's choice of structure?

Accepted Answer

Employee salaries

Answer

Company size

Answer

Organizational strategy

Answer

Industry dynamics

Question 43

Organizational restructuring typically involves:

Accepted Answer

Redefining roles and responsibilities within the organization

Answer

Increasing employee salaries

Answer

Reducing marketing budgets

Answer

Hiring additional personnel

Question 44

A decentralized organizational structure is likely to result in:

Accepted Answer

Accelerated decision-making processes

Answer

Reduced employee morale

Answer

Limited innovation potential

Answer

Increased bureaucratic processes

Question 45

Organizations operating in a highly dynamic and competitive business environment would benefit most from:

Accepted Answer

A flexible and adaptable organizational structure

Answer

A functional structure with clearly defined lines of authority

Answer

A highly centralized structure

Answer

A rigid hierarchical structure