OM Organizational Structure & Design

Question 1

Which organizational structure groups employees by function (e.g., marketing, finance, operations) and is most common in smaller or single-product organizations?

Accepted Answer

Functional structure

Answer

A functional structure organizes employees by their specialized function or department, making it ideal for organizations with a single product line or limited complexity.

Question 2

In a matrix organizational structure, employees typically report to:

Accepted Answer

Both a functional manager and a project manager

Answer

The defining feature of a matrix structure is dual reporting: employees report to both a functional manager (for expertise) and a project/product manager (for task direction).

Question 3

Span of control refers to:

Accepted Answer

The number of subordinates a manager directly supervises

Answer

Span of control is the number of direct reports a single manager oversees, which directly influences organizational hierarchy and communication flow.

Question 4

A wide span of control generally leads to:

Accepted Answer

Fewer management layers and a flatter organization

Answer

A wide span of control means each manager oversees many employees, reducing the need for multiple management layers and creating a flatter, more decentralized structure.

Question 5

Which type of organizational structure is best suited for a large company that operates in multiple, distinct product markets with different customer needs?

Accepted Answer

Divisional structure

Answer

A divisional structure groups the organization by product, market, or geography, allowing each division to function semi-autonomously and respond to its specific market demands.

(OM) Organizational Management Specialty Certification Practice Test

(OM) Organizational Management Specialty Certification Practice Test

OM Organizational Structure & Design