Organizational Structures in Business Organizations
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Questions and Answers

What is one potential benefit of decentralization mentioned in the text?

  • Increased returns for the organization (correct)
  • Limited departmental control
  • Lower productivity levels
  • Decreased competition among departments

How does decentralization impact departmental accountability according to the text?

  • It reduces accountability at each level
  • It eliminates the need for performance evaluation
  • It hinders the assessment of organizational objectives
  • It increases individual departmental accountability (correct)

Why is it important to balance decentralization with centralization according to the text?

  • To discourage innovation
  • To prevent organizational disintegration (correct)
  • To reduce productivity levels
  • To limit departmental competition

What challenge does decentralization pose in terms of performance accountability?

<p>Raises concerns about accountability of performance (D)</p> Signup and view all the answers

How does decentralization impact the generation of returns for an organization?

<p>Increases the generation of returns (C)</p> Signup and view all the answers

In response to challenges in decentralization, what control systems are being evolved according to the text?

<p>Innovative performance measurement systems (A)</p> Signup and view all the answers

What is a potential challenge related to managerial development in a divisional structure?

<p>High coordination costs (A)</p> Signup and view all the answers

In a divisional structure, what is a benefit of integrating all functions related to a particular product in one department?

<p>Easier responsibility allocation (B)</p> Signup and view all the answers

What is a consequence of failing to adapt to change in a dynamic business environment?

<p>Inability to survive (D)</p> Signup and view all the answers

What can hinder managerial development in a divisional structure due to an assertion of independence by managers?

<p>Ignoring organisational interests (B)</p> Signup and view all the answers

In what type of business enterprise is a divisional structure suitable?

<p>Enterprises with multiple product lines and varied resources (A)</p> Signup and view all the answers

What aspect makes it easier to fix responsibility for performance in a divisional structure?

<p>Product specialization (C)</p> Signup and view all the answers

Which type of organisational structure is more suited for large organisations with diversified activities?

<p>Divisional structure (D)</p> Signup and view all the answers

Why might functional heads in an organisation have difficulty appreciating other points of view?

<p>Narrow perspective due to same skills and knowledge base (D)</p> Signup and view all the answers

In a divisional structure, the organisation comprises of separate ____________.

<p>Business units or divisions (B)</p> Signup and view all the answers

Why do large organisations with diversified activities move away from the basic functional structure towards a divisional structure?

<p>To better cope with complexity (C)</p> Signup and view all the answers

Which organisational size is most suitable for a divisional structure according to the text?

<p>Large organisations with diversified activities (B)</p> Signup and view all the answers

How does a divisional structure differ from a functional structure?

<p>Inclusive of separate business units or divisions (D)</p> Signup and view all the answers

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