Organizational Business Functions I (OBFI) - Organizational Structures Quiz

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Questions and Answers

What does authority grant in an organization?

  • Decision-making hierarchy
  • Departmentalization
  • Responsibility (correct)
  • Power and rights

What is the outcome of authority according to the text?

  • Centralization
  • Work Specialization
  • Span of Control
  • Responsibility (correct)

What can result from overspecialization in an organization?

  • Specialized training demand
  • Higher turnover (correct)
  • Increased productivity
  • Efficiency in decision making

What does departmentalization involve in an organization?

<p>Grouping activities by function, product, geography, process, or customer (C)</p> Signup and view all the answers

What does centralization refer to in an organizational structure?

<p>Concentration of decision making at a single point (A)</p> Signup and view all the answers

Which term describes the unbroken line of authority from the top of the organization to the lowest level?

<p>Chain of Command (C)</p> Signup and view all the answers

Which of the following is NOT a characteristic of organizational structure?

<p>Determining the allocation of financial resources (C)</p> Signup and view all the answers

What is the primary purpose of an organizational structure?

<p>To define the hierarchy and reporting relationships within an organization (B)</p> Signup and view all the answers

Which of the following statements about organizational structure is NOT true?

<p>It is a static and inflexible system that cannot be modified (D)</p> Signup and view all the answers

In the context of organizational structure, what does the term 'authority' refer to?

<p>The power to make decisions and allocate resources (C)</p> Signup and view all the answers

Which of the following is NOT a commonly used type of organizational structure?

<p>Decentralized autonomous structure (A)</p> Signup and view all the answers

What is the primary role of an organizational structure?

<p>To define a hierarchy and assign responsibilities and decision-making authority (B)</p> Signup and view all the answers

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