Understanding Organizational Structure and Growth Patterns
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Questions and Answers

What is the main purpose of an organizational structure?

  • To focus on long-term performance only
  • To solely increase production volume
  • To provide a balance between task division and integration (correct)
  • To create uniform performance standards

    • Which organizational structure is most suitable for a small organization with a single or closely related product or service?

  • Matrix structure
  • Functional structure (correct)
  • Divisional structure
  • Simple structure

    • What are some disadvantages of a divisional structure?

  • Limited opportunities for employees
  • Impeded communication and coordination (correct)
  • Highly centralized decision making
  • Highly informal and coordination of tasks is done by direct supervision

    • What is a key advantage of a functional structure?

    <p>Enhanced coordination and control</p> Signup and view all the answers

    What is a major characteristic of a simple structure?

    <p>Highly centralized decision making</p> Signup and view all the answers

    What is a potential issue with a functional structure?

    <p>May lead to short-term thinking</p> Signup and view all the answers

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