4.1 Organisational structures

• What does organizational structure refer to within a company?

  Arrangement of tasks and roles
• In a functional organizational structure, employees are grouped by their area of expertise.


  True
• Match the organizational structure with its advantages:

  Functional ↔️ Specialization, economies of scale

  Matrix ↔️ Cross-functional collaboration, flexibility

  Flat ↔️ Fast decisions, enhanced autonomy
• A flat organizational structure has fewer levels of management than a hierarchical structure.

  True
• Match the organizational structure with its disadvantages:

  Hierarchical ↔️ Slow decision-making, rigid

  Flat ↔️ Overload on managers, unclear roles

  Matrix ↔️ Complex reporting, potential conflict

  Functional ↔️ Siloed departments, slow adaptation

  Divisional ↔️ Duplication of functions, higher costs
• Organizational structure is crucial for coordination, communication, and decision-making
• In a divisional structure, the organization is divided by product, service, or geographic region
• A flat structure empowers employees by removing layers of management
• What is the primary focus of a divisional structure?

  Product, service, or region
• In a functional structure, employees are grouped by their area of expertise
• A matrix structure combines functional and project-based reporting to create cross-functional teams
• The complex reporting structure in a matrix organization can lead to potential conflicts
• What is the purpose of an organizational structure?

  Achieve goals efficiently
• Organizational structure is crucial for coordination, communication, and decision-making
• Matrix structures use dual reporting, combining functional and project lines of command.
• Flat structures have decentralized decision-making and broad skills focus.


  True
• Flat structures may overload managers due to broader spans of control.


  True
• Divisional structures are responsive to local needs but may duplicate functions, increasing costs.


  True
• Matrix structures support efficient project teams but involve complex reporting lines.
• Organizational structure is crucial for coordination, communication, and decision-making
• A flat organizational structure removes layers of management
• A hierarchical organizational structure has multiple layers of management
• In a hierarchical structure, roles and responsibilities are clearly defined
• What is the primary purpose of organizational structure within a company?

  To achieve goals efficiently
• What is a key feature of a functional organizational structure?

  Specialization
• A hierarchical structure has multiple layers of management.

  True
• Grouping employees by expertise is a characteristic of a functional structure.


  True
• A flat structure can lead to unclear roles and responsibilities.


  True
• A hierarchical structure promotes specialization and efficiency within departments.


  True
• Match the organizational structure with its primary disadvantage:

  Hierarchical ↔️ Slow decision-making

  Flat ↔️ Unclear roles

  Matrix ↔️ Complex reporting

  Functional ↔️ Siloed departments

  Divisional ↔️ Conflicting priorities
• What is an advantage of a divisional structure?

  Responsiveness to local needs
• A hierarchical structure provides clear roles and specialization but can be rigid and slow to adapt.

  True
• Flat organizational structures encourage employee empowerment and faster decisions
• Divisional structures organize by product, service, or region to respond to local needs.
• Order the structures from least to most flexible:

  1️⃣ Hierarchical

  2️⃣ Functional

  3️⃣ Divisional

  4️⃣ Matrix

  5️⃣ Flat
• Functional structures ensure clear career progression but may suffer from siloed departments.
• Hierarchical structures are efficient but have limited flexibility.
• What two structures does a matrix organizational structure combine?

  Functional and project-based
• What is a key feature of a hierarchical organizational structure?

  Clear chain of command
• What is the primary focus of a divisional organizational structure?

  Organizing by product or region