Organizational Structure Concepts Quiz

The formal arrangement of jobs within an organization.

The process of developing and changing an organization's structure.

The degree to which tasks are divided into separate jobs.

The process of grouping jobs together.

The unbroken line of authority that extends from the upper organizational levels to the lowest levels.

The number of employees a manager can effectively supervise.

The degree to which decision-making authority is concentrated at upper levels.

The degree to which decision-making authority is pushed down to lower organizational levels.

Grouping jobs based on the tasks performed, like marketing, finance, or operations.

Grouping jobs by product line, like automobiles, electronics, or clothing.

Grouping jobs by geographical location, like regions, countries, or continents.

Grouping jobs based on the flow of products or services, focusing on stages of production or customer interaction.

Grouping jobs by customer type or needs, such as retail, wholesale, or specific customer segments.

The rights a manager has to give orders and expect compliance.

The obligation or expectation to perform a task or duty.

A type of organizational structure where high-ranking managers make all decisions and lower-level employees follow those orders.

An organizational structure where decision-making authority is given to managers closest to the actions and tasks.

Giving employees the power and responsibility to make decisions about their work.

The degree to which jobs are standardized and employee behavior is governed by rules and procedures.

A stable environment favors centralized decision-making, as change is minimal and upper management possesses the expertise.

Complex, uncertain environments often benefit from decentralization as lower-level managers are closer to the action and can adapt quickly.

When lower-level managers lack experience or skill, centralization might be preferable, ensuring consistent, top-down decisions.

If lower-level managers are capable and experienced, decentralization can be beneficial, leveraging their knowledge and expertise.

A structure characterized by high specialization, rigid departmentalization, clear chain of command, narrow spans of control, centralization, and high formalization.

Organisations characterized by cross-functional teams, cross-hierarchical teams, free flow of information, wide spans of control, decentralization, and low formalization.

A simple structure with little formalization, wide spans of control, and centralized authority.

Groups jobs based on functions like operations, finance, marketing, human resources, and product development.

Comprised of semi-autonomous business units or divisions operating under the parent corporation's oversight.

Teams at the heart of the organization, where employees are empowered and work across traditional boundaries.

Employees are more involved and empowered, leading to reduced barriers between functional areas.

Lack of a clear chain of command and pressure on teams to perform.

A structure where employees are assigned to temporary projects, returning to their functional areas after completion. It allows for flexibility and quick decision-making.

A structure where employees continuously work on projects, shifting to new ones as they are completed. It emphasizes project-based workflows.

A structure that breaks down traditional boundaries (horizontal, vertical, external). Examples include virtual or network organizations. It thrives on flexibility and talent acquisition from anywhere.

Advantages of a Matrix-Project Structure: Flexibility, ability to adapt to change, faster decision-making.

Disadvantages of a Matrix-Project Structure: Complex assignment process, potential for conflicts among team members.

Advantages of a Boundaryless Structure: Extreme adaptability, ability to draw on talent from various sources.

Disadvantages of a Boundaryless Structure: Difficulty maintaining control, potential communication challenges.

An organizational design that breaks down barriers between the company and its customers and suppliers, both internally and externally.

An organization that uses a small core of full-time employees and hires specialists on a temporary basis for specific projects.

A small core company that outsources major business functions to other companies.

A manufacturing company that uses outside suppliers to provide components for its final products.

An organization that fosters continuous learning, adaptation, and change through knowledge sharing and employee empowerment.

Empowered teams, open communication, shared vision, and a strong culture of trust and values are essential for a learning organization.

Removing boundaries between the organization and its external environment, such as customers and suppliers.

Removing barriers within the organization, such as hierarchies and departments, by creating empowered teams.