A functional organizational structure groups employees by specialized activities
The choice of organizational structure depends on the size, nature, and goals
A divisional structure may lead to conflicts between divisions.
True
The line and staff structure combines a hierarchical line of command with specialized advisory roles.
True
Decentralised structures increase flexibility
Organizational structure refers to the formal system of task and authority relationships that control how people coordinate their actions
Matrix structures combine elements of both functional and divisional structures.
True
Conflicts can arise in a line and staff structure due to differences between line and staff roles.
True
In centralized structures, decision-making authority is concentrated at the top levels of the organization.
True
Flat structures are often adopted by smaller organizations to promote faster decision-making.
True
Flat structures are often adopted by smaller, more agile organizations to promote faster decision-making, better communication, and higher employee engagement
In a matrix structure, employees report to both a functional manager and a product/project manager
Businesses adopt a matrix structure to balance functional expertise with responsiveness to specific projects.
True
Organizational structure defines how work is divided, grouped, and coordinated within a business.
True
The choice of organizational structure depends on factors like the size, nature, and goals
The choice between a functional or line and staff structure depends on factors like the size, complexity, and needs
The line and staff structure combines a hierarchical line of command with specialized advisory roles.
True
Decentralized structures empower employees at various levels by distributing decision-making authority.
True
Centralized structures concentrate decision-making authority at the top levels of the organization.
True
What is an example of an organization that might use a flat structure?
Small tech startup
The choice of organizational structure depends on the organization's size, the nature of the business, and strategic goals
Match the organizational structure with its advantage:
Divisional Structure ↔️ Responsive to local needs
Matrix Structure ↔️ Balances functional expertise
Flat Structure ↔️ Faster decision-making
Network Structure ↔️ Access to global expertise
What does organizational structure refer to in a business context?
Task and authority relationships
Match the organizational structure with its key feature:
Functional Structure ↔️ Specialization of skills
Divisional Structure ↔️ Responsive to local needs
Matrix Structure ↔️ Flexible and adaptable
What is a characteristic of hierarchical organizational structures?
Clear reporting lines
What is a key feature of decentralised structures?
Distributed decision-making
Decentralised structures reduce layers of management compared to hierarchical structures.
True
Divisional structures group employees by product, service, or geographical region
Hierarchical structures are characterized by clear reporting lines and defined levels of authority
What is a key advantage of decentralised structures compared to hierarchical structures?
Speeds up decision-making
Flat structures have few or no levels of middle management
Arrange the following organizational structures in order of increasing flexibility:
1️⃣ Hierarchical
2️⃣ Divisional
3️⃣ Matrix
Match the organizational structure with its defining characteristic:
Functional Structure ↔️ Groups employees by specialized activities
Divisional Structure ↔️ Groups employees by product or region
Matrix Structure ↔️ Combines functional and divisional elements
What is a major challenge in coordinating a matrix structure?
Complex coordination
Innovative companies often favor decentralized structures to encourage employee-driven creativity
Match the type of organizational structure with its key feature:
Functional Structure ↔️ Clear division of labor
Divisional Structure ↔️ Responsive to local needs
Matrix Structure ↔️ Flexible and adaptable
The line and staff structure combines a clear chain of command with specialized advisory roles.
True
In a functional structure, employees are grouped by specialized activities
The choice between a functional or line and staff structure depends on the organization's size, complexity, and needs
Compared to hierarchical structures, decentralized structures reduce layers of management