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2.5 Making Human Resource Decisions
2.5.1 Organisational Structures
Different organisational structures and when each is appropriate:
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An organizational structure determines how work is divided, coordinated, and
controlled
Flat structures are common in
startups
and small businesses.
True
A hierarchical structure ensures
clear lines
of command and responsibilities.
True
Match the characteristic with the functional structure:
Work Organization ↔️ Grouped by business function
Specialization ↔️ High level of functional specialization
What is the chain of command in an organization?
Authority from top to bottom
What are the three bases for dividing work in a divisional structure?
Product lines, regions, customers
Employees in a divisional structure specialize in specific functional areas.
False
A matrix structure combines elements of functional and
divisional
structures.
An organizational
structure
defines how a company's roles and relationships are arranged.
True
For what type of organizations is a functional structure most appropriate?
Large, established organizations
A divisional structure allows for clear accountability.
True
How is work organized in a divisional structure?
By product, region, or customer
In a matrix structure, employees report to both a
functional manager
and a project manager.
True
In a flat structure, what type of authority flow is encouraged?
Bottom-up and sideways
One disadvantage of a network structure is the potential for loss of
control
Match the organizational structure with its characteristic:
Divisional ↔️ Grouped by product or region
Matrix ↔️ Combines functional and divisional
Flat ↔️ Fewer management layers
Network ↔️ Collaborates with external partners
What is a key disadvantage of hierarchical structures?
Slow to adapt to change
For what type of organization is a hierarchical structure most appropriate?
Large corporations
What does an organizational structure define in a company?
Roles, responsibilities, relationships
Match the characteristic with the functional structure:
Coordination ↔️ Coordination within each function
Decision-Making ↔️ Centralized within each department
Match the work organization with the structure:
Divisional ↔️ Grouped by product, region, or customer
Functional ↔️ Grouped by business function
A divisional structure is highly flexible to
changing
market needs.
True
What type of skills do employees in a matrix structure need to balance?
Generalist and specialist
What does the chain of command ensure in a hierarchical structure?
Accountability is clear
In a divisional structure, coordination is high across
divisions
but less within them.
A divisional structure is suitable for
organizations
with multiple product lines or markets.
True
Decision-making in a divisional structure is
decentralized
Who shares decision-making in a matrix structure?
Functional and project managers
What is a key characteristic of a network structure?
Flexible boundaries
Larger organizations often adopt hierarchical structures due to their complexity.
True
What does an organizational structure outline within a company?
Roles, responsibilities, relationships
Flat structures promote direct communication and rapid decision-
making
The chain of command ensures that instructions are followed and
accountability
is clear.
A functional structure groups employees with similar skills and
expertise
Hierarchical structures have multiple layers of
management
The functional structure is less flexible to
changing
market needs.
True
What are the three bases for dividing work in a divisional structure?
Product lines, regions, customers
What type of organizations is a divisional structure most suitable for?
Large, diversified organizations
Match the organizational structure with its advantage:
Divisional ↔️ Clear accountability
Functional ↔️ Efficient use of skills
Matrix ↔️ Responsive to changing needs
In a functional structure, decision-making is
centralized
within departments.
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