Chapter 19 – Organisational Design

Which of the following is a factor that determines internal structure?

• Views of management

• Color of the office walls

• Type of office furniture

• Brand of computers used

The type of management affects the internal structure of a business by:

• influencing decision-making processes

• determining the company's mission

• shaping the external market environment

• affecting global economic trends

Which industry encourages a hierarchical structure with clear-cut responsibilities?

• Retailing

• Software development

• Agriculture

• Education

The management structure of an organisation indicates:

• The hierarchy and reporting relationships within the organisation

• The financial performance of the organisation

• The marketing strategy of the organisation

• The technological advancements of the organisation

How many layers or levels of hierarchy are there in the police force example provided?

The concept of 'chains of command' as described in the text is:

• a hierarchical structure of authority in an organization

• a method of communication between peers

• a system for managing resources

• a strategy for marketing

What does the red line in the hierarchy diagram represent?

List one advantage of the traditional hierarchical structure mentioned in the text.

• Clear chain of command

• Increased flexibility

• Faster decision making

• Improved creativity

Fill in the blank: A flatter organizational structure often results in increased _______ due to the delegation of authority.

• responsibility

• confusion

• hierarchy

• bureaucracy

The main purpose of matrix structures in organizational design is to:

• Enhance communication and flexibility by combining functional and product-based structures

• Increase hierarchical levels and centralize decision-making

• Focus solely on cost reduction and efficiency

• Eliminate the need for cross-functional teams