OM Organizational Structure & Design 3

Question 1

When redesigning an organization to improve agility, which structural change is most commonly recommended?

Accepted Answer

Flattening the hierarchy and decentralizing decision-making authority

Answer

Increasing the number of management layers to improve oversight

Answer

Reducing spans of control to create more specialized roles

Answer

Consolidating all functions under a single centralized department

Question 2

A team-based organizational structure differs from a traditional functional structure primarily because:

Accepted Answer

Permanent cross-functional teams replace departments as the primary work unit

Answer

It eliminates all reporting relationships within the organization

Answer

It relies entirely on external contractors rather than employees

Answer

Teams are formed temporarily for projects and disbanded upon completion

Question 3

Which concept describes the informal organization that exists alongside the formal organizational structure?

Accepted Answer

Informal network

Answer

Shadow hierarchy

Answer

Parallel organization

Answer

Latent structure

Question 4

In contingency theory of organizational design, the most appropriate structure for an organization depends on:

Accepted Answer

Situational factors such as environment, technology, size, and strategy

Answer

The personal management style of the CEO

Answer

Industry-wide best practices and benchmarking standards

Answer

The number of employees and geographic locations

Question 5

When an organization is experiencing rapid growth, which structural adaptation is typically most critical?

Accepted Answer

Increasing formalization and adding management layers to maintain control

Answer

Reducing the number of departments to simplify coordination

Answer

Outsourcing all non-core functions to maintain a small permanent workforce

Answer

Eliminating all formal reporting relationships to encourage innovation

Question 6

Which organizational design approach is specifically intended to increase collaboration between previously siloed departments without permanently restructuring them?

Accepted Answer

Implementing cross-functional liaison roles or integrating committees

Answer

Creating a new divisional structure around each silo

Answer

Merging all silos into a single large functional department

Answer

Replacing the hierarchy with a fully flat structure

Question 7

The term 'organizational ambidexterity' refers to an organization's ability to:

Accepted Answer

Balance both exploitation of current capabilities and exploration of new opportunities

Answer

Operate effectively in both domestic and international markets simultaneously

Answer

Manage both centralized and decentralized decision-making at the same time

Answer

Maintain two parallel org charts—one formal and one informal