Different organisational structures and when each is appropriate:

Cards (61)

  • 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.