Nature and Types of Organization

What is the primary purpose of an organization?

• To maximize individual profits
• To collect resources for personal gain
• To achieve a common goal
• To compete against other organizations

Which of the following best describes the concept of coordination of effort in organizations?

• A method to increase individual performance
• A strategy to reduce costs
• A way to eliminate hierarchy
• A common characteristic that ensures collaboration

What does division of labor primarily involve?

• Grouping employees by their personal interests
• Dividing tasks into specialized jobs
• Creating a flat organizational structure
• Assigning all tasks to a single employee

How does a hierarchy of authority function within an organization?

• It focuses solely on employee satisfaction
• It eliminates the need for supervision
• It encourages equal decision-making among all employees
• It uses a chain of command to control actions

What role does integration play in an organization's internal environment?

• It isolates different work units
• It involves collaboration and coordination of work divisions
• It focuses on individual performance metrics
• It eliminates the need for communication

Which of the following is a characteristic of a vertical organizational structure?

• It minimizes the number of management levels
• It promotes teamwork across departments
• It clarifies authority rights and responsibilities
• It allows for rapid decision-making

Which statement accurately reflects the power dynamics in private companies?

• Owners have absolute power over their company
• Power is distributed evenly among all staff
• Management has more power than owners
• Employees have equal power in decision-making

What is a key feature of a horizontal organizational structure?

• It focuses on individual performance
• It has a strict chain of command
• It divides the organization into smaller work units
• It centralizes decision-making

What does the functional approach to departmentalization emphasize?

• Forming subdivisions based on specialized activities
• Creating teams based on personal relationships
• Eliminating all forms of hierarchy
• Focusing solely on financial management

What is a network structure in business operations?

• A single large organization with multiple departments
• A collection of independent organizations working together
• A hierarchical structure with strict authority levels
• A flat organization with no defined roles