Seminar 7: Organizational Structure Firms

Question 1

Which of the following terms best describes the division of an organization into formal groupings?

a) Complex hierarchy
b) Coordination
c) Control
d) Hierarchy of authority
e) Departmentalization

Answer 1

Departmentalization

Question 2

What type of organizational structure is one in which there is a single department responsible for each of the basic business functions within the firm?

Answer 2

Unitary functional structure

Question 3

In a U-form organisational structure with a control span of 2, how many levels and managers would be required if the number of operatives is equal to 16?

a) 4 levels and 7 managers
b) 4 levels and 14 managers
c) 5 levels and15 managers
d) None of the above

Answer 3

5 levels and15 managers

Question 4

Which of the following terms involves the location of decision making rights and rule making authority within a hierarchy?

a) Complex hierarchy
b) Coordination
c) Control
d) Hierarchy of authority

Answer 4

Control

Question 5

What type of organizational structure is one that is comprised of a set of autonomous divisions led by a corporate headquarters office, assisted by a corporate staff that provides information about the internal and external business environment?

Answer 5

Multidivisional structure

Question 6

What type of organizational structure is one in which employees are subject to two or more sets of managers at once?

Answer 6

Matrix structure

Question 7

Which of the following statements about “flat” organizations is true?

Answer 7

In a flat organization, there are fewer direct reports to a group head than in a taller firm

Question 8

Which of the following is true about the differences between M-form and U-form firms?

Answer 8

Compared to a U-form firm, in an M-form firm the interests of executives in product or geographic divisions can be better aligned with those of shareholders