2.2. Organizational structures

Matrix structure: Uses teams of employees with suitale skills drawn from the same departments to respond to the customers’ needs.

• True

• False

Answer explanation

*From across normal departments (different).

'Focuses on tasks necessary for business success'

• Advantage of Matrix structure

• Disadvantage of Matrix structure

This type of organization structure is task oriented and based on use of teams.

• Delegation

• Chain of Command

• Matrix

• Informal structure

Which structure was made to overcome the problems associated with the traditional or hierarchical structure?

• Delegation

• Delayering

• Centralization & Decentralization

• Matrix structure

When an organization does not have an obvious structure.

• Matrix structure

• Informal structure

Allows highly trained and motivated employees to organize their working lives and take decisions with a high degree of independence.

• Matrix structure

• Formal structure

• Informal structure

Which term describes refers to the official rights of a line manager to give orders and instructions to his/her subordinates in the organization to get things done?

• Authority

• Decentralization

• Bureaucracy

• Centralization

Answer explanation

Authority refers to the official rights of a line manager in an organization to give orders and instructions to his/her subordinates to get things done.

Which term refers to administrative systems within an organization?

• Centralization

• Chain of command

• Flat structure

• Bureaucracy

Answer explanation

Bureaucracy refers to administrative systems (formal processes and policies, including paperwork) within an organization.This includes the formal policies and procedures of the business.

Which term refers to the situation in organizations where decision-making is predominantly made by a small group of senior managers at the top of the organizational hierarchy?

• Centralization

• Decentralization

• Delegation

• De-layering

Answer explanation

Centralization refers to the situation in organizations where decision-making is predominantly made by a small group of senior managers at the top of the organizational hierarchy, i.e. decision-making power is centralized in the hands of a few (senior executives).

Which term refers to the formal lines of authority in an organization?

• Delegation

• Hierarchical structures

• Organizational structures

• Chain of command

Answer explanation

The chain of command refers to the formal lines of authority in an organization, as illustrated in an organizational chart.