Organizational Structure and Matrix Management Quiz
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Questions and Answers

What is the main characteristic of a matrix organizational structure?

  • There is a clear hierarchy with a short chain of command
  • Product managers are solely responsible for all employee supervision
  • Employees report to both a product manager and a functional manager (correct)
  • Each functional area has a director who reports directly to the managing director

    • What is a disadvantage of de-layering in an organizational structure?

  • Enhanced decision-making speed
  • Increased communication efficiency
  • Decreased flexibility and responsiveness (correct)
  • Improved coordination among departments

    • What is the primary purpose of de-layering in an organization?

  • To introduce more hierarchical levels for clearer reporting
  • To increase efficiency by reducing bureaucracy (correct)
  • To slow down decision-making processes
  • To create redundancy within the organizational structure

    • In terms of decision-making authority, what distinguishes a centralized organizational structure?

    <p>All key decisions are made at the top of the hierarchy</p> Signup and view all the answers

    What differentiates a line manager from a staff manager in an organizational setting?

    <p>Line managers oversee day-to-day operations, while staff managers handle long-term planning</p> Signup and view all the answers

    What is the distinguishing feature of a decentralized organizational structure?

    <p>Authority is distributed across various levels of the organization</p> Signup and view all the answers

    What characterizes a line manager in an organization?

    <p>The person with the authority to make decisions and be held accountable for the outcomes</p> Signup and view all the answers

    Which statement best describes the concept of centralization in organizations?

    <p>Concentrating decision-making in a single authority, typically senior management</p> Signup and view all the answers

    What could be a potential drawback of implementing de-layering in an organization?

    <p>Problems arising from extensive spans of control</p> Signup and view all the answers

    What is one of the main purposes of de-layering in an organization?

    <p>To reduce costs and bureaucracy</p> Signup and view all the answers

    In an organizational context, what does decentralization refer to?

    <p>Distributing decision-making among various organizational levels</p> Signup and view all the answers

    Which type of organizational structure focuses on organizing by products or services offered?

    <p>By product</p> Signup and view all the answers

    What is the primary disadvantage of de-layering in organizational structures?

    <p>Reduced communication between upper and lower management</p> Signup and view all the answers

    In organizational structures, what is the main purpose of de-layering?

    <p>To flatten the hierarchy</p> Signup and view all the answers

    What is a key characteristic of a line manager in an organization?

    <p>Directly oversees employees' work</p> Signup and view all the answers

    When a company is centralized, decision-making authority is primarily held by:

    <p>Top management at the headquarters</p> Signup and view all the answers

    What distinguishes a staff manager from a line manager within an organization?

    <p>Staff managers are not involved in operational activities.</p> Signup and view all the answers

    In the context of centralization and decentralization, which of the following best describes decentralization?

    <p>Empowering lower-level employees with decision-making authority</p> Signup and view all the answers

    Study Notes

    Organizational Structures

    • Matrix structure combines two types of organizational structures, generally by product and by function.
    • In a matrix structure, each product has a team of employees, and the product manager gets input and approval from functional managers.
    • Employees have multiple superiors, reporting to both product manager and functional manager.

    Business Organizational Chart

    • The business has four levels of hierarchy.
    • The managing director has a span of control of four.
    • Each functional director controls a supervisory team and has a span of control of two functional supervisors.
    • Functional supervisors are responsible for each function and have a span of control of five members in their staff.

    Business Structure

    • The business has a flat or horizontal organizational structure due to only four levels of hierarchy and a short chain of command.
    • It is structured by function, with four clear functional areas, each having a director who reports directly to the managing director.

    Types of Managers

    • A line manager has authority to make decisions and bears responsibility for the outcomes.
    • A staff manager communicates decisions made by a line manager without responsibility for those decisions.

    Centralization and Decentralization

    • Centralization is the concentration of decision-making in a single authority, usually senior management.
    • Decentralization is when decision-making is distributed among different levels of an organization.

    De-layering

    • De-layering is the removal of levels of hierarchy from an organization's structure.
    • Its main purposes are: reorganizing the organizational structure, downsizing, reducing bureaucracy, reducing costs, improving communication, and improving efficiency.
    • A possible disadvantage of de-layering is that it can lead to problems associated with wide spans of control.

    Organizational Structures

    • Types of organizational structures include: by hierarchy, by function, by product, by region, and matrix.

    Matrix Structure Features

    • Span of control ranges between two (each functional director) and five (each functional supervisor).

    Project-Based and Shamrock Organizations

    • A project-based organization is a type of organizational structure.
    • A Shamrock organization is a type of organizational structure that distinguishes between core, contracted out, and peripheral functions.

    Factors Influencing Organizational Structure

    • Factors that influence the decision about the structure of an organization include: type of organization, business objectives, potential growth, nature of the market, and external factors.

    Appropriate Organizational Structure

    • The most appropriate structure for a business is that which best helps it achieve its objectives.

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    Quiz Team

    Description

    Test your knowledge on organizational structures and matrix management by taking this quiz. Understand how different types of hierarchy, function, product, and region come together in a matrix organization. Practice drawing organizational charts to represent complex business structures.

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