Organizational Structures and Their Impacts

The video introduces six common organizational structures: hierarchical, functional, flat, divisional, matrix, and network. Each structure is explained with its advantages and disadvantages, highlighting how they impact company operations, decision-making, and employee roles. The video emphasizes that no single structure is best for all businesses, and choosing the right one depends on factors like company size, industry, and desired level of employee empowerment.

What is the primary role of an organizational structure in a company?

• To manage the company's financial accounts

• To decide the company's marketing strategy

• To establish the hierarchy and workflow

• To determine employee salaries

Which of the following is an advantage of a hierarchical structure?

• Faster decision-making

• Increased employee autonomy

• Clear career and promotion path

• Lower operational costs

What is a disadvantage of the hierarchical structure?

• Limited skill development

• Slow decision-making process

• Lack of defined authority

• High employee turnover

In a functional structure, employees are grouped based on:

• Geographic location

• Customer types

• Product lines

• Specialty skills or roles

Which is a potential drawback of a functional structure?

• High operational costs

• Poor communication

• Hindered decision-making

• Lack of accountability

How are divisions typically organized in a divisional structure?

• By employee age

• By product, market, or geography

• By salary levels

• By years of service

What is a benefit of using a divisional structure?

• Lower costs

• Improved company culture

• Faster global expansion

• Centralized decision-making

Which structure is most suitable for startups and small businesses?

• Hierarchical structure

• Functional structure

• Flat structure

• Matrix structure

What is a key advantage of a matrix structure?

• Increases secrecy

• Reduces workload

• Simplifies management roles

• Encourages collaboration

In a network structure, what is a potential disadvantage?

• Improved employee satisfaction

• Higher operational costs

• Increased control over operations

• Loss of control over outsourced work