What is an organisational structure?
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What is an organisational structure?
An organisational structure outlines the relationships, roles, and responsibilities of employees in the organisation.
Define the term hierarchy.
A hierarchy is the levels of authority within an organisation, describing the ranking of positions from top to bottom.
What is a bureaucracy?
A bureaucracy is an organisation with many levels of authority, often making decision-making and communication time-consuming.
Define the term chain of command.
The chain of command is the formal line of authority that flows down from top management to lower-level employees, defining who reports to whom.
What does span of control refer to?
Span of control refers to the number of subordinates that a manager or supervisor manages.
True or False?
In a centralised structure, decision-making authority is distributed throughout the organisation.
False.
In a centralised structure, decision-making authority is concentrated at the top of the organisation, with senior managers making most of the decisions.
What is a matrix structure?
A matrix structure is where employees are grouped based on both their functional expertise and the specific projects or products they are working on.
Define the term decentralised structure.
A decentralised structure is one where authority to make decisions is distributed throughout the organisation, with lower-level employees having delegated decision-making power
True or False?
A narrower span of control means there are fewer layers of management.
False.
A narrower span of control means there are more layers of management
What are the two typical reporting lines in a matrix structure?
In a matrix structure, employees typically have two reporting lines:
A functional manager, e.g. the marketing manager
A project or product manager
What are the features of a tall organisational structure?
A tall organisational structure has:
Multiple levels of management
A more centralised decision making process
A long chain of command
True or False?
Tall structures are common in small organisations or start-ups.
False.
Flat structures are common in small organisations or start-ups.
What are the features of a flat organisational structure?
A flat organisational structure has
Fewer levels of management
A decentralised decision-making process
A short chain of command
True or False?
A tall organisational structure offers opportunities for career advancement and promotion within the organisation.
True.
A tall organisational structure offers opportunities for career advancement and promotion within the organisation.
True or False?
There is no 'right' or 'wrong' organisational structure.
True.
There is no 'right' or 'wrong' organisational structure. Organisations should choose the most appropriate structure to achieve their aims and objectives.
True or False?
In a flat organisational structure, decision-making is often slow.
False.
Decision-making can be slow in tall organisational structures, as information must pass through multiple layers of management.
What is organisation by product?
Organisation by product is a structure built around specific products or projects.
True or False?
Organisation by region is common in businesses located in several different geographical locations.
True.
Organisation by region is common in businesses located in several different geographical locations
What is organisation by function?
Organisation by function is a structure where employees are arranged into different departments that complete specific tasks, such as finance, human resources or marketing.
True or False?
Flat structures are common in large organisations with complex operations, such as government agencies
False.
Tall structures are common in large organisations with complex operations, such as government agencies
What is an adaptive organisation?
An adaptive organisation is one that is able to change its structure in response to external factors.
True or False?
Project-based structures can help a business respond quickly to changing market conditions.
True.
Project-based structures can help a business respond quickly to changing market conditions
What type of structure may benefit businesses expanding into international markets?
Businesses expanding into international markets may benefit from adopting a regional organisational structure.
Define project-based organisation structure.
A project-based organisation structure is one where employees are assigned to projects full-time, led by project managers who have authority and decision-making power.
True or False?
Project-based structures can improve problem-solving.
True.
Project-based structures promote communication and collaboration between different functions or project teams which can improve problem-solving.