Organizational structure practice questions.

State what is meant by the 'span of control' in an organisational structure.

• The number of layers of management between the top and bottom of the hierarchy
• The number of subordinates who report directly to one manager
• The route along which decisions and instructions pass down the organisation
• The degree to which decision-making is concentrated at head office

Answer: The number of subordinates who report directly to one manager

Span of control is the number of employees a manager directly supervises; the number of management layers describes levels of hierarchy, and the route instructions pass along is the chain of command.

Determine the most likely consequence of a business delayering its organisational structure.

• The number of hierarchical levels increases
• The span of control of remaining managers widens
• Communication between top and bottom becomes slower
• The chain of command becomes longer

Answer: The span of control of remaining managers widens

Delayering removes management levels, so each remaining manager supervises more staff (wider span) and the chain of command shortens.

Explain which of the following is an advantage of a decentralised organisational structure.

• Decisions are made faster and lower-level staff feel more empowered
• Tighter central control ensures complete consistency across all branches
• Head office alone makes every operational decision
• It removes the need for any local decision-making

Answer: Decisions are made faster and lower-level staff feel more empowered

Decentralisation pushes decision-making to lower levels/branches, speeding responses and motivating staff; strict central control is a feature of centralisation.

Distinguish which description correctly identifies an organisation structured 'by product'.

• Departments are arranged around functions such as marketing, finance and operations
• The business is divided into divisions, each for a different product or brand
• Teams are grouped only by the geographical region they serve
• Every employee reports to two managers simultaneously

Answer: The business is divided into divisions, each for a different product or brand

A product-based structure creates a separate division for each product line or brand; grouping by marketing, finance and operations is a functional structure, grouping by region is geographical, and reporting to two managers describes a matrix structure.

Determine a likely drawback of a matrix organisational structure.

• It completely removes the need for any teamwork
• Staff face conflicting demands from two managers
• It guarantees faster decision-making in all cases
• It eliminates all project-based working

Answer: Staff face conflicting demands from two managers

In a matrix, staff report to both a functional and a project manager, which can create conflicting priorities and confusion over authority.

Suggest how flatter organisational structures can support the concept of 'change' and greater flexibility in a modern business.

• By adding more layers of managers to slow decisions
• By empowering staff and speeding up communication
• By centralising all authority at head office
• By removing all delegation of tasks

Answer: By empowering staff and speeding up communication

Flatter structures shorten the chain of command and delegate more, allowing quicker, more responsive decision-making, well suited to fast-changing environments.