Business Models and Organisational Structures Quiz

In a hierarchical organisation structure, who does every employee report to?

• The CEO

• A supervisor

• The board of directors

• The customers

Which of the following is a disadvantage of a hierarchical structure?

• It promotes innovation and quick decision-making.

• It reduces the number of management levels.

• It may demotivate employees who feel undervalued.

• It encourages employees to focus on company-wide goals.

What impact does a hierarchical structure have on decision-making within an organization?

• It speeds up the decision-making process.

• It establishes clear decision-making authority.

• It removes the need for decision-making.

• It encourages decentralized decision-making.

What is a potential cost-related disadvantage of a hierarchical structure?

• It reduces overall salary expenses.

• It increases costs due to higher salaries at more management levels.

• It eliminates the need for management positions.

• It decreases the need for specialized skills.

What is a key characteristic of a flat organisation structure?

• Hierarchical management style

• Democratic management style

• Centralized decision-making

• Strict job titles

In a flat organisation structure, how are employees typically positioned in relation to management?

• Employees are below management

• Employees are at the same level as management

• Employees are above management

• Employees are not involved in management

What is a key characteristic of a matrix organisation structure?

• Employees have only one manager.

• It uses cross-functional teams.

• It focuses solely on individual tasks.

• It avoids project-based work.

How does a matrix organisation structure typically organise its employees?

• By geographic location.

• By skills, functions, and/or products.

• By seniority level.

• By personal preferences.

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

• Allows managers to choose the best skills for each project.

• Can create conflict between project managers if they need the same skills.

• Employees may become overwhelmed if there is too much demand on their skills/time.

• Highly skilled employees may be poached by competitors.

What is a potential disadvantage of a matrix structure?

• Motivates employees to use their skills in other roles.

• Uses employees’ skills and talents across the whole organization.

• Highly skilled employees may be poached by competitors.

• Offers more flexibility when making project decisions.