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

Unity of command is a classical management principle stipulating that each subordinate should receive directives from only one manager to avoid confusion and conflicting instructions.

Question 2

A network organizational structure is characterized by:

Accepted Answer

A core organization that outsources major functions to external partners

Answer

A network structure relies on a hub organization that coordinates and outsources many of its functions to a web of external partners, vendors, and specialists.

Question 3

Formalization in an organizational structure refers to:

Accepted Answer

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

Answer

Formalization describes how standardized an organization's jobs are through rules, procedures, and documentation, with high formalization leaving little employee discretion.

Question 4

In organizational design, 'departmentalization' refers to:

Accepted Answer

Grouping jobs into coordinated work units or departments

Answer

Departmentalization is the basis by which jobs are grouped together, such as by function, product, geography, or customer, to coordinate organizational activities.

Question 5

A holacracy is best described as:

Accepted Answer

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

Answer

Holacracy replaces the traditional management hierarchy with a system of self-organizing, autonomous circles where authority and decision-making are distributed across the organization.

(OM) Organizational Management Specialty Certification Practice Test

(OM) Organizational Management Specialty Certification Practice Test

OM Organizational Structure & Design 2