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

Flattening the hierarchy and decentralizing authority pushes decision-making closer to the operational level, enabling faster response times and greater organizational agility.

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

In a team-based structure, permanent cross-functional teams become the primary organizational unit, with members contributing diverse functional expertise to shared goals.

Question 3

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

Accepted Answer

Informal network

Answer

The informal network consists of unofficial relationships, communication channels, and influence patterns that emerge naturally among employees alongside the formal 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

Contingency theory holds that there is no single best organizational design; rather, the optimal structure depends on situational factors like the external environment, strategy, and technology.

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

Rapid growth typically requires adding structure—more formalized processes and additional management layers—to maintain coordination, consistency, and control across an expanding workforce.

(OM) Organizational Management Specialty Certification Practice Test

(OM) Organizational Management Specialty Certification Practice Test

OM Organizational Structure & Design 3