Organisational Structure Recap

What is one advantage of tall structures in an organization?

• Faster communication

• Clear hierarchy

• Lower costs

• Greater employee autonomy

Why do businesses often realign themselves?

• To increase profits

• To operate more effectively

• To reduce employee workload

• To improve customer satisfaction

Which of the following is an example of realignment?

• Hiring more staff

• Changing the reporting structure

• Increasing marketing efforts

• Launching a new service

What is the primary goal of vertical integration?

• To diversify product offerings

• To reduce dependency on suppliers

• To increase market competition

• To expand into new markets

Which of the following is an example of vertical integration in the food industry?

• A restaurant buying a farm

• A restaurant opening a new branch

• A restaurant launching a new menu

• A restaurant hiring more staff

What is a common challenge faced by companies engaging in vertical integration?

• Simplified management

• Increased complexity in operations

• Reduced market share

• Lower production costs

What is horizontal integration?

• Acquisition of a business at a different level of the value chain

• Acquisition of a business in a different industry

• Acquisition of a business at the same level of the value chain in the same industry

• Acquisition of a business in a different country

The passing of authority from one level to another is called:

• Delegation

• Responsibility

• Chain of command

• Span of control

A flat organisational structure will usually have:

• A more flexible approach to decision making

• Rigid rules

• Many levels of hierarchy

• More promotional opportunities for employees

Which of the following statements best describes the term span of control?

• The number of people that directly report to a line manager

• The formal channels of communication in an organisation

• Removal of a level in an organisational structure

• The number of levels in an organisational hierarchy