F1 – Chapter 1 & 2 test part 2

Q1. What are organisational structures. They are:

A) Designs and strategies to achieve organisational goals

B) Interlocking strategies, plans and roles that coordinate activities
C) Recurring cycles/systems of relationships and activities in an organisation
D) All of these

Q2. Why is it important to understand organisational structures? To:

A) Design organisations and other systems for optimum performance

B) Know where to focus to solve major problems in organisations
C) Increase your mechanical aptitudes
D) Know what to expect as organisations mature

Q3. Which of the following is not true of “Functional Organisation”?

A) Functional organisation are fairly effective in stable enviornment, where they are part of
heterogenious, global market.
B) There is an inherent ease of control and review in function organisations
C) There is low level of duplication of work and internal competition
D) It is slow to adapt to market needs
E) It helps to develop specilization in the employees

Q4. Division organisations are structured around a particular product, geographical area or customer
group. Which one is an advantage of division organisation?

A) They help build specialisation in the emloyees

B) It discourages internal competition and reduces duplication of work
C) Divisions can work as companies within companies and therefore provide advantage of smaller
companies to bigger companies
D) It helps in realizing economies of scale
E) It reduces internal pricing problems

Q5. Multiple reporting relationships is a characterstic of which of these structures of organisations?

A) Function
B) Division
C) Matrix
D) None of the above
E) All of these

Q6. The division of roles and responsibility is of prime importance in ________ organisation. Who should
do what and under what conditions? Who has the authority in particular case? Could conflict arise from

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a particular situation? Power struggles and unneseccary conflicts of interests can loom where there is a
lack of clarity.

Fill in the blank with the right word from below.

A) Machine Bureaucracy
B) Matrix
C) Function
D) Professional Bureaucracy
E) Simple Structure

Q7. Which one of the following is not a type of organisation structure according to Mintzberg’s five
structures?

A) Simple
B) Complex
C) Adhocracy
D) Machine Bureaucracy

Q8. Which of the following structure is most commonly found in universities and hospitals?

A) Adhocracy
B) Simple Structure
C) Professional Bureaucracy
D) Machine Bureaucracy
E) Hybrid Structures

Q9. Which of the following structure is best suited for creative problem solving?

A) Machine Bureaucracy
B) Professional Bureaucracy
C) Matrix Structure
D) Simple structure
E) Adhocracy

Q10. Strategic Business Units are found in which of the following organisations?

A) Functional Organisations
B) Matrix Organisations
C) Machine Bureaucracy
D) Divisonalised Organisations
E) Adhocracies

Q11. Matrix Organisation suffers from which of the following disadvantages?

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 F1 – Chapter 1 & 2 test part 2

A) Navel Gazing
B) Power Struggle
C) Ambigous Responsibilities
D) A and B only
E) A, B and C

Q12. Routine work, heavily standardized procedures, repetitive work are characterstics of

A) Machine Bureaucracy
B) Divisonalised Organisations
C) Matrix Organisations
D) Professional Bureaucracy
E) A & B only

Q13. Which type of structure is used when a company has locations in multiple cities.

A) Flat Organisational Structure

B) Functional Organisational Structure
C) Product Organisational Structure
D) Geographical Organizational Structure

Q14. Which type of organisational structure enables a company to better serve the local market?

A) Product Organisational Structure

B) Georgraphical Organisational Structure
C) Flat organisational Structure
D) Functional Orgnaisational Structure

Q15. A reason why a firm should analyse its staffing structure would be to:

A) Increase the range of products sold

B) Alter a marketing campaign
C) Identify gaps and vacancies
D) Force staff to work harder

Q16. A key benefit of a flatter organisational structure is often:

A) Lower Costs
B) Higher Authority
C) Lower Recruitment
D) Hogher Retention

Q17. A possible disadvantage of a decentralised structure is:

A) Less control over decision – making

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B) Employees won’t feel empowered

C) Decisions can’t be taken
D) Head office managers have more power

Q18. The way information is communicated up and down the hierarchy is through the:

A) Workforce Planning System

B) Employee newsletter
C) Chain of command
D) Internal Appraisal System

Q19. A hierarchical organisation is one that has:

A) Few Layers of management

B) A high number of layers of management
C) A large number of employees
D) Few managers

Q20. Which of these is a common reason for organisational change in a business?

A) Increased Demotivation
B) Job allocations
C) Pace of external change
D) Aiming for a taller structure

Q21. What should a manager never delegate?

A) Control over job appraisals

B) Responsibilities
C) Delayering
D) Communication Control

Q22. An advantage of hierarchial structure is:

A) It has a wide span of control which means workers feel trusted

B) Communication is easy so errors are less likely to occur
C) It give opportunity for promotion, which will motivate workers
D) Communication is quicker, so the business is more efficient.

Q23. The power to make decisions over what a business does is known as:

A) Delegation
B) Leadership
C) Motivation
D) Authority

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Q24. The number of subordinates reporting to a manger is called the

A) Chain of command
B) Hierarchy
C) Workforce Role
D) Span of control

Q25. Which of the following is not an advantage of a functional organisation?

A) Accountability
B) Clarity
C) Specialisation
D) Consistency

Q26. What characterstic listed below is a major advantage of the matrix system of organisation?

A) Flexibility
B) Respect
C) Individualism
D) Understanding

Q27. Of the possible advantages of a narrow span of control listed below which one is likely to lead to
greater delayering?

A) Delegation can be better managed

B) Those at the top of the organisation have less obvious control over subordinates
C) Costs can be reduced as certain management functions are no longer needed.
D) The need for written communication is reduced.

Q28. One of the main advantage of a more centralised system of management is said to be more control
over decision making. Which of the following is ued to support such a claim?

A) Greater accuracy in decision making

B) It aids consistency and predicability within the organisation
C) The company has a more focused approach to decision – making
D) Employees tend to be more satisfied with their levels of responsibility

Q29. There are several factors that need to be in place so that delegation can be effective. Which of the
following needs to be ‘active’ to promote effective delegation?

A) Good communication
B) A pleasant working enviornment
C) Adequate Support
D) Access to IT

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