OM Organizational Structure & Design 2

Question 1

The concept of 'unity of command' in organizational design states that:

Accepted Answer

Each employee should report to only one superior

Answer

All employees must follow a single organizational mission

Answer

Command decisions must be unanimous among managers

Answer

Leadership roles should be consolidated into one executive

Question 2

A network organizational structure is characterized by:

Accepted Answer

A core organization that outsources major functions to external partners

Answer

Strict hierarchical reporting lines with minimal cross-functional interaction

Answer

A matrix of project teams all reporting to a single executive

Answer

Departments organized around geographic territories

Question 3

Formalization in an organizational structure refers to:

Accepted Answer

The degree to which jobs are standardized and governed by explicit rules

Answer

The process of promoting employees through defined career paths

Answer

Creating formal mission and vision statements for all departments

Answer

The number of official management tiers in a hierarchy

Question 4

In organizational design, 'departmentalization' refers to:

Accepted Answer

Grouping jobs into coordinated work units or departments

Answer

The process of dissolving underperforming business units

Answer

Distributing authority to lower-level managers

Answer

Measuring inter-departmental performance metrics

Question 5

A holacracy is best described as:

Accepted Answer

A self-managing organizational system with distributed authority and no fixed job titles

Answer

A hierarchical structure with a strong central authority

Answer

A divisional structure organized around geographic regions

Answer

A matrix structure with dual reporting to functional and project managers

Question 6

Which of the following best describes a 'tall' organizational structure?

Accepted Answer

Many management layers with a narrow span of control

Answer

Few management layers with a wide span of control

Answer

A flat hierarchy where all employees report to one leader

Answer

A virtual structure with geographically distributed teams

Question 7

The primary advantage of a divisional organizational structure is:

Accepted Answer

Greater autonomy and responsiveness to individual market or product needs

Answer

Maximized efficiency through deep functional specialization

Answer

Reduced duplication of resources across the organization

Answer

Simplified communication through a single chain of command