54 Questions
Which of the following best describes organizational theory?
The study of social organizations and their structures and operations
What do economists, business analysts, and academic researchers studying organizational theory aim to understand?
The dynamics of a successful business
Which of the following is a primary aspect addressed by classical theory in organizational theory?
Formal organizational structure
Which principle of the classical theory argues that the production of a commodity splits into various divisions of manufacturing?
Division of labor
Which theory focuses on the emotional and psychological components of peoples' behavior in an organization?
Neo-classical theory
Which theory considers interactions between people within an organization and the surrounding environment?
Modern theory
According to the contingency theory, who makes the most valuable or impactful choices in an organization?
Employees working at higher levels
Which structure allows employees to be in-depth specialists as they are more likely to have niche positions?
Hierarchical Structure
Which structure may result in confusion regarding roles, responsibilities, and priorities?
Matrix Structure
Which structure fosters better communication and collaboration between team members?
Horizontal/Flat Structure
Which structure relies on open communication and reliable partners, both internal and external?
Network Structure
Which factor can impact the stability and security of an organization?
Legal consideration
Which organizational structure type groups employees based on the function they provide?
Hierarchical Structure
Which type of organizational structure is the most popular?
Hierarchical Structure
What does open systems theory argue about an organization's environment?
It influences the organization's leadership strategies
Which type of organizational structure has a narrow span of control?
Tall structure
What is a trade-off of specialization?
Agility of workforce
What determines the formal reporting lines in an organization?
Hierarchy of authority
Which type of organizational structure has no managers?
Flat structure
Which of the following is NOT one of the four key elements of an organization's structure according to Edgar Schein?
Hierarchy of authority
What is the benefit of specialization in the workplace?
It increases efficiency
What is a potential disadvantage of team-based organizations in a globalized industry?
Personality conflicts
What is the role of managers in communicating an organization's common purpose?
To communicate the organization's direction
Which one of the following is a disadvantage of the divisional organizational structure?
It can lead to operational inefficiencies from separating specialized functions
Which one of the following is a characteristic of the line organizational structure?
It is the simplest method of administration and is easy to understand and manage
Which one of the following is a disadvantage of the team-based organizational structure?
It can create a culture of favoritism based on relationships or friendship
Which one of the following is an advantage of the network organizational structure?
It promotes healthy competition, innovation, and collaboration
Which of the following is NOT a primary aspect addressed by classical theory in organizational theory?
Importance of employee motivation
What do economists, business analysts, and academic researchers studying organizational theory aim to understand?
All of the above
Which of the following is a characteristic of the line organizational structure?
Narrow span of control
Which type of organizational structure groups employees based on their geographic location?
Hierarchical Structure
Which factor can have a great impact on a business's ability to grow and remain successful?
Economic conditions
Which organizational structure type is characterized by employees having one clear supervisor?
Hierarchical Structure
Which type of organizational structure is the most popular?
Hierarchical Structure
Which type of organizational structure allows employees to use their skills in different roles?
Matrix Structure
Which type of organizational structure is characterized by a clear line of authority and reporting within the organization?
Line Structure
Which type of organizational structure is most suitable for small companies and start-ups?
Horizontal/Flat Structure
Which type of organizational structure is viewed as agiler and more decentralized than other structures?
Network Structure
Which type of organizational structure allows for independent operational flow and minimizes the risk of one company's failure affecting the others?
Divisional organizational structure
What is a disadvantage of the network organizational structure?
Breaching of confidential information
Which organizational structure type is characterized by a unified structure and effective communication?
Line organizational structure
What is an advantage of the team-based organizational structure?
Reinforcement of problem-solving and teamwork
Which principle of the classical theory argues that the production of a commodity splits into various divisions of manufacturing?
Division of labor
Which theory focuses on the emotional and psychological components of peoples' behavior in an organization?
Neo-classical theory
Which type of organizational structure allows employees to be in-depth specialists as they are more likely to have niche positions?
Functional organizational structure
According to the contingency theory, who makes the most valuable or impactful choices in an organization?
Employees working at higher levels
Which of the following is NOT one of the four key elements of an organization's structure according to Edgar Schein?
Hierarchy of authority
Which of the following is an advantage of globalization in the manufacturing industry?
Improved communication between employees
What is a potential disadvantage of specialization in the workplace?
Difficulty finding and training people for specific tasks
Which of the following is a common characteristic of team-based organizations in a fast-changing industry environment?
Flexibility in adapting to a fast-changing environment
Which type of organizational structure has a narrow span of control?
Tall structure
Which one of the following is a disadvantage of the team-based organizational structure?
Less opportunity for job improvements
What determines the formal reporting lines in an organization?
Hierarchy of authority
What is a potential disadvantage of specialization in the workplace?
Reduced employee job satisfaction
Test your knowledge on globalization and its impact on manufacturing companies. Explore the benefits of communication and cooperation between employees and suppliers worldwide in the production of high-quality goods while keeping costs low.
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