Organizational Structure and Design: A Comprehensive Guide

Posted on Aug 5, 2024 in Other subjects

1. The Organizational Structure Definition Process

The organizational structure definition process involves the following:

• Dividing work into tasks and activities.
• Grouping tasks and activities into departments.
• Establishing lines of communication and liaison.
• Assigning tasks based on employee skills.
• Maximizing department specialization.
• Minimizing hierarchical levels.

2. Criteria for Body Formation

The process of forming bodies or departments within an organization depends on these criteria:

• Importance of the activity.
• Need for coordination.
• Frequency of the activity.
• All of the above.

3. Hierarchical Levels and Organizational Structure

The number of hierarchical levels that constitute an organizational structure corresponds to:

• Span of control.
• Line of command.
• Job division.
• None of the above.

4. Implications of a Wide Span of Control

A wide span of control implies:

• A shorter chain of command.
• A larger organizational structure.
• A lower level of hierarchical levels.
• Both a and c.

5. Further Implications of a Wide Span of Control

A wide span of control:

• Limits saturation of managerial positions but creates larger communication circuits.
• Implies a lighter structure but leads to work accumulation in managerial positions.
• Implies a lighter structure and low levels of work accumulation in managerial positions.
• Both a and c.

6. Coordination Through Norms, Rules, and Procedures

When coordination is achieved through established norms, rules, and procedures, it is referred to as:

• Output standardization.
• Process standardization.
• Skill standardization.
• Direct supervision.

7. Advantages of a Functional Structure

A functional organizational structure:

• Allows for higher efficiency at lower costs.
• Provides a global vision of organizational problems.
• Serves as an effective structure for coordinating activities across different products.
• All of the above.

8. Divisionalization Based on Products

Divisionalization according to products is appropriate when a firm:

• Offers products with a similar technological base.
• Offers differentiated products to different geographical areas.
• Offers differentiated products that do not share significant interrelations.
• All of the above.

9. Disadvantages of Divisional Structures

Disadvantages of divisional structures include:

• Risk of losing control over divisions.
• Low coordination of activities related to the same product, geographical area, or customer target.
• Difficulties in fostering innovation.
• All of the above.

10. Breaking the “Principle of Unit of Command”

The “Principle of Unit of Command” is broken in which organizational structure?

• Functional structure.
• Divisional structure.
• Matrix structure.
• None of the above.

11. Characteristics of a Matrix Structure

A matrix structure is characterized by:

• A greater capacity for innovation and adaptation to the market.
• Organizational units organized according to functional areas.
• Organizational units organized according to geographical areas.
• All of the above.

12. Liaison Channels Between Organizational Units

Examples of liaison channels between organizational units include:

• Integrating managers.
• Mutual adjustment.
• Direct supervision.
• Both b and c.

13. Staff Relationships

Staff relationships refer to:

• Relationships developed across bodies without hierarchical relationships.
• Line relationships generated through hierarchy to direct supervisors or direct subordinates.
• Both of the above.
• None of the above.

14. The Technostructure

The technostructure within an organization:

• Centralizes support functions for the entire structure.
• Is granted functional authority.
• Takes on tasks involving the planning and control of activities and is responsible for standardization.
• Both b and c.

15. Internal Factors Affecting Centralization

Internal organizational factors that influence the degree of centralization include:

• Geographic dispersion of the organization.
• Track record of the organization.
• Evolutionary speed of the organization.
• All of the above.

16. Benefits of Decentralization

Decentralization allows for:

• Uniformity in decisions.
• Avoiding manager overloading.
• Making decisions in a shorter time period.
• Both b and c.

17. Impact of Environmental Turbulence

Higher environmental turbulence implies a need for:

• Higher centralization.
• Decentralization of important decisions.
• A larger chain of command.
• Both b and c.

18. Characteristics of a Learning Organization

A company is considered a learning organization when:

• The level of employee training is high for all staff.
• It fosters flexibility, allowing people to accept and adapt to new ideas.
• The organization accumulates a vast amount of knowledge.
• None of the above.

19. Decentralization and Organizational Models

Decentralization is supported in which organizational models?

• Operative adhocracy models.
• Network organizational models.
• Horizontal organizational models.
• All of the above.

20. Mechanical Bureaucracy

Mechanical bureaucracy is characterized by:

• Fast responses to environmental changes.
• A high level of decentralization.
• A large number of hierarchical levels.
• All of the above.

21. Professional Bureaucracy

Professional bureaucracy is characterized by:

• Process standardization.
• High horizontal and vertical centralization.
• Skills standardization.
• Both b and c.

22. Operative Adhocracy

Operative adhocracy is characterized by:

• Treating each customer’s problem as a unique issue.
• Offering common customer solutions.
• Being organizations with low customer orientation.
• Both a and c.

23. The Federal Model

The Federal organizational model involves:

• A high level of vertical centralization.
• Power granted by units to the center.
• Working with multidisciplinary teams.
• All of the above.

24. The Clover Organization

The Clover organization:

• Handles all functions of the value chain internally.
• Forms strategic alliances using new technological platforms.
• Outsources all activities that can be performed externally by other organizations.
• Both b and c.

25. Diversified Organizational Models

Diversified organizational models are generally applied to:

• Young organizations.
• Small organizations.
• Complex environments.
• None of the above.

26. Operative Adhocracy and the Technical System

In the Operative Adhocracy organizational model:

• Projects are outsourced.
• The technical system is simple and non-regulatory.
• None of the above.
• All of the above.

27. The “Distributed Activation” Network

In a “Distributed Activation” Network:

• Relationships between the units that make up the network are absolutely equal.
• The selection and integration of initiatives from units, as well as the definition of strategy, are imposed by central authority.
• The center or “strategic cell” plays a major role.
• None of the above.

28. The Horizontal Organization

The Horizontal organization focuses on:

• Relating objectives to customer satisfaction.
• Relating objectives to financial performance.
• Relating objectives to…
• None of the above.

29. The Virtual Organization

In a Virtual organization:

• The information system is the fundamental component.
• The main coordination mechanism is process standardization.
• It primarily operates as an organization that sells through the internet.
• Both b and c.

30. Strategic Implementation Responsibility

Strategic implementation is the responsibility of:

• High-level managers.
• Middle-line managers.
• The entire organization.
• Staff bodies.

31. Strategic Formulation

Strategic formulation is deliberated in:

• a. Bureaucratic organizations.
• b. Network organizations.
• c. Clover organizations.
• d. All of the above.

32. Mutual Adaptation as a Coordination Mechanism

Mutual adaptation serves as a coordination mechanism in:

• a. Bureaucratic organizations.
• b. Network organizations.
• c. Diversified organizations.
• d. All of the above.

33. Relationship Between Strategy and Design

Is there a relationship between an organization’s strategy and its design?

• a. Yes, organizational design should align with and support the strategy.
• b. No, there isn’t.
• c. Yes, there is a specific organizational structure for each type of strategy.
• d. Yes, the organizational structure should be determined before designing the strategic plan.

34. Policies, Procedures, and Strategic Implementation

How do policies and procedures contribute to strategic implementation?

• a. They provide guidelines for actions, behaviors, decisions, and practices that align with the strategy.
• b. They limit the tasks to be performed.
• c. They influence the level of employee motivation.
• d. All of the above.

35. Benefits of Innovation

Innovation:

• a. Enables companies to gain a competitive advantage.
• b. Helps in forecasting environmental changes.
• c. Contributes to increased economic performance.
• d. All of the above.

36. Innovation as a Key Factor

Innovation is crucial for achieving:

• a. Higher market value.
• b. Higher market performance.
• c. Both of the above.
• d. None of the above.

37. FedEx’s Organizational Evolution

FedEx’s organizational model has evolved towards:

• a. A Virtual Model.
• b. A Diversified Model.
• c. Both of the above.
• d. None of the above.