Organizing the business

Question 1

The key elements of organizational structure are

Answer 1

Hierarchy-Departmentalization-Division of labor-Span of Control-Specialization

Question 2

Hierarchy

Answer 2

The hierarchy defines the chain of command and the levels of authority within an organization.

Question 3

Departmentalization

Answer 3

This refers to how the organization groups jobs and activities. Departmentalization can be based on function (e.g. finance, marketing), product (e.g. different product lines), geography (e.g. different regions), or customer segments (e.g. consumer, business).

Question 4

Span of Control

Answer 4

This refers to the number of employees that a manager can effectively supervise.

Question 5

Specialization

Answer 5

This refers to the degree to which tasks are divided into specialized jobs.

Question 6

Organizing a business offers several benefits, including

Answer 6

Clarity and Focus-Effectiveness

Question 7

Types of organisational structure are

Answer 7

Functional-Divisional

Question 8

Advantages of a flat organizational structure

Answer 8

greater flexibility-specialisation

Question 9

Disadvantages of a flat organizational structure

Answer 9

Lack of Specialization-Increased Workload

Question 10

Advantages of a tall organizational structure

Answer 10

Clear Chain of Command-Greater Opportunities for Career Advancement

Question 11

Disadvantages of a tall organizational structure

Answer 11

Communication Issues-Higher Overhead Costs

Question 12

Advantages of functional organisation

Answer 12

Specialization-Clear Career Paths

Question 13

Disadvantages of functional organisation

Answer 13

Limited communication-Lack of Flexibility

Question 14

Advantages of a Matrix Structure

Answer 14

Improved Communication-Greater Flexibility

Question 15

Disadvantages of a Matrix Structure

Answer 15

Difficulty in defining roles-Higher Overhead Costs

Question 16

Advantages of employee specialization in a business

Answer 16

Innovation-Improved Training and Development

Question 17

Disadvantages of employee specialization in a business

Answer 17

Boredom-Dependency

Question 18

A decentralized organizational structure is characterized by

Answer 18

Decision-making authority is delegated-Greater flexibility

Question 19

Disadvantages of decentralized organization

Answer 19

Lack of accountability

Question 20

There are several factors to consider when determining the appropriate span of control, including

Answer 20

Size of organization-Managerial ability

Question 21

How departmentalization can be an effective way to improve efficiency and ensure a long term success?

Answer 21

The needs of the business, employees, and customers