Practice Test: IB Business And Management- Human Resources: #2.2
Questions and Answers
- 1.
Which of the following is not a valid reason why a firm may choose to delayer its organizational structure?
- A.
Remove ambiguity in the chain of command
- B.
Improves speed of communication
- C.
More cost efficient (less management overheads)
- D.
To motivate and empower staff with new responsibilities and increase motivation
Correct Answer
A. Remove ambiguity in the chain of commandExplanation
Delayering the organizational structure can help remove ambiguity in the chain of command by reducing the number of hierarchical levels. This ensures that there is a clear line of authority and accountability, which can improve decision-making and overall efficiency. By having fewer layers, communication can also be streamlined, leading to faster and more effective dissemination of information. Additionally, delayering can be cost-efficient as it reduces management overheads, allowing the firm to allocate resources more efficiently. However, motivating and empowering staff with new responsibilities and increasing motivation is not a direct reason for delayering the structure.Rate this question:
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- 2.
Which of the following reasons is not a valid reason why a firm may choose to downsize?
- A.
It is cheaper because only core staff receive full benefits
- B.
Downsizing means a reduction in staff numbers which has cost-savings benenefits
- C.
Staff are nopw more likely to feel secure in their jobs after a significant round of redundancies
- D.
Less management, and less management associated overheads, is needed due to a smaller workforce
Correct Answer
C. Staff are nopw more likely to feel secure in their jobs after a significant round of redundanciesExplanation
Downsizing typically leads to job insecurity and decreased morale among employees, as they perceive their jobs to be at risk. Therefore, it is unlikely that staff would feel more secure in their jobs after a significant round of redundancies.Rate this question:
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- 3.
A matrix structure may cause problems for a business because staff may have some concerns about prioritising tasks when they have more than one potential line manager.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
A matrix structure in a business refers to a situation where employees report to multiple managers, which can lead to confusion and conflicts in prioritizing tasks. When staff members have more than one potential line manager, it can be challenging for them to determine which tasks should take precedence. This can result in inefficiency, delays, and a lack of clear direction for employees. Therefore, it is true that a matrix structure may cause problems for a business due to concerns about prioritizing tasks.Rate this question:
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- 4.
Which of the following is least likely to be a concern for a firm adopting a matrix structure?
- A.
Some staff may have concerns about the priority of different projects and tasks
- B.
Decreased productivity to communication pronblems
- C.
There is a potential for certain team members to have a dysfunctional working relationship
- D.
Management control may be more difficult as potential for prioritisation and team conflicts increase
Correct Answer
B. Decreased productivity to communication pronblemsExplanation
A firm adopting a matrix structure is less likely to be concerned about decreased productivity due to communication problems. This is because a matrix structure is designed to improve communication and collaboration among different teams and departments. With the matrix structure, there is a clear focus on cross-functional teamwork and information sharing, which helps to minimize communication problems and enhance productivity. Therefore, decreased productivity due to communication problems is not a major concern for a firm adopting a matrix structure.Rate this question:
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- 5.
Which of the following is not a way that effective delegation can help motivate workers?
- A.
Staff empowerment
- B.
Increased responsibility
- C.
Pay increases associated with increased responsibility
- D.
Esteem needs being satisfied
Correct Answer
C. Pay increases associated with increased responsibilityExplanation
Effective delegation can help motivate workers through staff empowerment, increased responsibility, and by satisfying esteem needs. However, pay increases associated with increased responsibility may not necessarily be a way that effective delegation can directly motivate workers. While pay increases can be a motivating factor for some individuals, effective delegation primarily focuses on empowering and engaging employees through trust, autonomy, and recognition, rather than solely relying on monetary incentives.Rate this question:
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- 6.
It is important for businesses to understand their informal structures for all of the following reasons except:
- A.
Informal organisations can help promote a sense of belongingness in an organisation
- B.
Informal groups are a good way of spreading and receiving messages
- C.
Informal structure reduce the need for formal structures, and therefore can save on management overheads
- D.
Knowledge and skills are unevenly distributed throughout an organisation and the use of the informal organisation can help to identify and exploit different sources of knowledge and skill
Correct Answer
C. Informal structure reduce the need for formal structures, and therefore can save on management overheadsExplanation
The given answer is incorrect because informal structures do not reduce the need for formal structures and save on management overheads. In fact, informal structures exist alongside formal structures and serve different purposes. Informal structures can enhance communication, promote a sense of belongingness, and help identify and utilize diverse knowledge and skills within an organization. However, formal structures are still necessary to establish clear roles, responsibilities, and hierarchy, ensuring efficient management and decision-making processes.Rate this question:
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- 7.
The official path that instructions are passed along is termed the 'chain of command'.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The explanation for the given correct answer is that the term "chain of command" refers to the official path through which instructions are passed in an organization or hierarchical structure. It signifies the flow of authority and communication from higher-ranking individuals to lower-ranking individuals. Therefore, it is true that the official path that instructions are passed along is termed the "chain of command".Rate this question:
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- 8.
The official path that instructions are passed along is termed the 'span of control'.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The given statement is false. The official path that instructions are passed along is not termed the 'span of control'. The span of control refers to the number of subordinates that a manager or supervisor can effectively manage. It determines the hierarchical structure within an organization and the number of levels of management. The statement does not accurately describe the concept of span of control.Rate this question:
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- 9.
Flat organisational structures help improve communication.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Flat organizational structures help improve communication because they have fewer levels of management, which reduces the number of intermediaries between employees and top-level decision-makers. This allows for faster and more direct communication between employees, leading to better collaboration, information sharing, and problem-solving. Additionally, flat structures often promote a more open and transparent culture, where employees feel empowered to voice their opinions and ideas, further enhancing communication within the organization.Rate this question:
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- 10.
Tall organisational structures help improve communication.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
Tall organizational structures typically have multiple levels of management and a long chain of command, which can hinder communication. In such structures, information often needs to pass through several layers of management before reaching its intended recipients, causing delays and potential distortion of the message. On the other hand, flat organizational structures, with fewer levels of management, promote direct communication and collaboration among employees, leading to better and more efficient communication. Therefore, the statement that tall organizational structures help improve communication is false.Rate this question:
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- 11.
The person directly above you in an organisation is called your 'line manager'.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
A line manager is a person who directly supervises and manages the work of employees within an organization. They are responsible for providing guidance, assigning tasks, and evaluating performance. In the hierarchical structure of an organization, the person directly above an employee is their line manager. Therefore, the statement "The person directly above you in an organization is called your 'line manager'" is true.Rate this question:
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- 12.
The person directly above you in an organisation is called your 'chain of command manager'.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The person directly above you in an organization is not called your "chain of command manager." The term "chain of command" refers to the hierarchical structure of authority within an organization, where each person has a direct superior and subordinates. The person directly above you in the chain of command is your immediate supervisor or manager. Therefore, the correct answer is false.Rate this question:
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- 13.
An orgainisational structure with many levels in the hierarchy is a
- A.
Tall organisational structure
- B.
Flat organisational structure
- C.
Matrix organisational structure
- D.
Delegated organisational structure
Correct Answer
A. Tall organisational structureExplanation
A tall organizational structure refers to an organizational design that has multiple levels in its hierarchy. In this structure, there are several layers of management and a clear chain of command from top to bottom. This allows for a more centralized decision-making process and a greater level of control and supervision over employees. The tall structure is often found in large organizations where there is a need for strict control and coordination between different departments and levels of management.Rate this question:
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- 14.
An orgainisational structure with few levels in the hierarchy is a
- A.
Tall organisational structure
- B.
Flat organisational structure
- C.
Matrix organisational structure
- D.
Delegated organisational structure
Correct Answer
B. Flat organisational structureExplanation
A flat organizational structure is characterized by having few levels in the hierarchy. In this type of structure, there is a minimal number of management layers between the top-level executives and the frontline employees. This promotes a more decentralized decision-making process and encourages open communication and collaboration among employees. It also allows for a quicker flow of information and faster decision-making. This structure is often found in small organizations or startups where there is a need for flexibility, adaptability, and a more informal work environment.Rate this question:
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- 15.
Removing layers in the hierarchy to cut costs is termed
- A.
Restructuring
- B.
Downsizing
- C.
Delayering
- D.
Redundency
Correct Answer
C. DelayeringExplanation
Delayering refers to the process of removing layers in the hierarchy of an organization in order to cut costs. This involves eliminating unnecessary levels of management and reducing the number of employees in higher positions. Delayering helps streamline the organization, improve communication, and increase efficiency by reducing bureaucracy. It is a strategic move often undertaken during restructuring efforts to make the organization leaner and more agile.Rate this question:
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- 16.
Teams formed naturally, through unofficial means are termed the informal organisation.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The given statement is true because informal organization refers to the social structure that emerges within a formal organization. It is characterized by unofficial relationships, interactions, and communication channels that develop naturally among employees. These informal networks can have a significant impact on the functioning of the organization, influencing decision-making, communication, and social dynamics. Therefore, teams formed through unofficial means are indeed considered part of the informal organization.Rate this question:
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- 17.
Teams formed naturally, through unofficial means are termed the teamworking organisation.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The given statement is false. Teams formed naturally, through unofficial means, are actually termed as informal teams. Informal teams are not officially recognized or structured within the organization, and they typically emerge based on personal relationships and common interests among employees. On the other hand, a teamworking organization refers to a formal structure where teams are intentionally formed and managed by the organization to achieve specific goals and objectives.Rate this question:
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- 18.
A span of control that encompasses many people is called
- A.
Flat
- B.
Wide
- C.
Narrow
- D.
Tall
Correct Answer
B. WideExplanation
A span of control that encompasses many people is called "wide." This means that a manager or supervisor has a large number of subordinates reporting directly to them. A wide span of control is often seen in organizations that have a decentralized structure and empower their employees to make decisions and take on more responsibilities. It allows for more efficient communication and coordination between the manager and their subordinates, as well as a greater level of autonomy for the employees.Rate this question:
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- 19.
A wide span of control is one that encompasses many people.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
A wide span of control refers to a management structure where a supervisor or manager oversees a large number of subordinates. This means that the supervisor has a broad range of direct reports and is responsible for managing a large group of people. Therefore, the statement that a wide span of control encompasses many people is true.Rate this question:
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- 20.
A narrow span of control is one that encompasses many people.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
A narrow span of control is one that encompasses only a few people, not many. This means that a supervisor or manager has a limited number of subordinates reporting directly to them. It allows for closer supervision and more direct communication within the organization.Rate this question:
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- 21.
A firm with a flat organisational structure has few layers of management.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
A flat organizational structure typically consists of fewer layers of management compared to a hierarchical structure. In a flat structure, there is a wider span of control, meaning that each manager oversees a larger number of employees. This allows for more direct communication and decision-making, as there are fewer levels of approval needed. Therefore, it can be inferred that a firm with a flat organizational structure indeed has few layers of management.Rate this question:
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- 22.
The span of control is inversely realted to the number of layers in an organisation.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The span of control refers to the number of subordinates that a manager can effectively supervise. It is not inversely related to the number of layers in an organization. In fact, a flatter organizational structure with fewer layers often allows for a wider span of control, as there are fewer levels of management between the top and bottom of the organization. This allows for more direct supervision and communication, leading to increased efficiency and effectiveness. Therefore, the statement is false.Rate this question:
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- 23.
A wide span of control requires effective delegation of authority and responsibility.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
A wide span of control refers to a management structure where a manager has a large number of subordinates reporting directly to them. In such a structure, effective delegation becomes crucial as the manager cannot personally oversee and manage every task and decision. By delegating authority and responsibility to capable subordinates, the manager ensures that tasks are efficiently executed and decisions are made at the appropriate level. This allows the manager to focus on strategic planning and higher-level responsibilities, resulting in a more effective and streamlined organization. Therefore, the statement that a wide span of control requires effective delegation of authority and responsibility is true.Rate this question:
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- 24.
Delegation comes with extra financial rewards; e.g., pay rises.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
Delegation does not necessarily come with extra financial rewards such as pay rises. While delegation can lead to increased job satisfaction and personal growth, it does not guarantee monetary benefits. Delegation is primarily about assigning tasks and responsibilities to others, allowing them to develop skills and take on more challenging work. Financial rewards are typically determined by factors such as performance, experience, and organizational policies, rather than delegation alone.Rate this question:
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- 25.
Responsibility cannot be delegated; i.e., it always remains the authority of the line manager.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Responsibility refers to the obligation and accountability for the completion of a task or the achievement of a goal. This statement suggests that responsibility cannot be delegated, meaning that it cannot be transferred or assigned to someone else. It implies that the ultimate responsibility for a task or goal always rests with the line manager, who is the person in charge and has the authority to make decisions and take action. Therefore, the correct answer is true.Rate this question:
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- 26.
Authority cannot be delegated to subordinates.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
Authority can be delegated to subordinates. Delegation of authority is a common practice in organizations where managers assign certain tasks and decision-making power to their subordinates. This allows for effective distribution of workload and empowers employees to make decisions within their designated areas of responsibility. Delegation of authority is an important aspect of effective management and helps in improving efficiency and productivity within an organization. Therefore, the given statement is false.Rate this question:
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- 27.
A key drawback of tall hierarchical structures is the potential for miscommunication problems due to the large number of layers in an orgainisation.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Tall hierarchical structures have a large number of layers in an organization, which can lead to miscommunication problems. With many levels of management, information can get distorted or lost as it passes through each layer. This can result in misunderstandings, delays in decision-making, and a lack of clarity in roles and responsibilities. Therefore, the statement is true.Rate this question:
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- 28.
Line managers have a wide span of control in tall hierarchical structures.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
In tall hierarchical structures, line managers have a narrow span of control rather than a wide span of control. This means that they have a limited number of subordinates reporting directly to them. This is because tall hierarchical structures have multiple levels of management, with each level having a smaller number of subordinates. In contrast, flat hierarchical structures have a wide span of control, where line managers have a larger number of subordinates reporting directly to them. Therefore, the statement that line managers have a wide span of control in tall hierarchical structures is false.Rate this question:
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- 29.
A driving force for delayering is to improve communication flows.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Delayering refers to the process of reducing the number of hierarchical levels in an organization. By doing so, it eliminates unnecessary layers of management and bureaucracy, resulting in a flatter organizational structure. This can improve communication flows within the organization as it reduces the number of intermediaries through which information needs to pass. With fewer layers, communication can become more direct, efficient, and effective, allowing for faster decision-making and better coordination among employees. Therefore, it can be concluded that improving communication flows is indeed a driving force for delayering, making the answer "True".Rate this question:
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- 30.
The difference between accountability and responsibility is that accountability works upward (an employee is accountable to her line manager) and responsibility works downwards (managers are responsible for their subordinates).
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The explanation for the given correct answer is that accountability and responsibility have different directions of flow. Accountability flows upward, meaning that employees are answerable to their line managers. On the other hand, responsibility flows downward, indicating that managers are responsible for their subordinates. Therefore, the statement that accountability works upward and responsibility works downward is true.Rate this question:
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- 31.
The difference between accountability and responsibility is that responsibility works upward (an employee is responsible to her line manager) and accountability works downwards (managers are accountable for their subordinates).
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The statement is false because the explanation provided is incorrect. The difference between accountability and responsibility is not that responsibility works upward and accountability works downwards. In fact, accountability is the obligation to answer for one's actions, while responsibility is the duty to perform a task or role. Both accountability and responsibility can exist in both upward and downward directions within an organizational hierarchy.Rate this question:
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- 32.
The difference between the role of directors and the role of managers is that directors are concerned with the strategic plans of an organisation and managers are concerned with the day-to-day affairs of the business.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
Directors and managers have different roles within an organization. Directors focus on the long-term strategic plans, setting goals, and making important decisions for the organization as a whole. They are responsible for overseeing the overall direction and performance of the company. On the other hand, managers are more concerned with the daily operations and tasks necessary to achieve the goals set by the directors. They are responsible for implementing the strategic plans, managing employees, and ensuring that the day-to-day affairs of the business run smoothly. Therefore, the statement that directors are concerned with strategic plans and managers with day-to-day affairs is true.Rate this question:
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- 33.
The difference between the role of directors and the role of managers is that managers are concerned with the strategic plans of an organisation and directors are concerned with the day-to-day affairs of the business.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The explanation for the given correct answer is that the statement is incorrect. The actual difference between the role of directors and managers is that directors are responsible for setting the overall direction and strategy of the organization, while managers are responsible for implementing and executing those strategies on a day-to-day basis. Directors focus on long-term goals and governance, while managers focus on operational activities and achieving short-term objectives. Therefore, the statement that managers are concerned with strategic plans and directors are concerned with day-to-day affairs is false.Rate this question:
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- 34.
The difference between hierarchical and flat organisation structures is that hierarchical structures are tall with many levels of responsibility, and flat structures have fewer levels of responsibility thereby giving managers a greater span of control.
- A.
True
- B.
False
Correct Answer
A. TrueExplanation
The explanation for the given correct answer is that hierarchical structures have multiple levels of authority and responsibility, with each level reporting to the one above it. This creates a tall organizational structure with a clear chain of command. On the other hand, flat structures have fewer levels of authority, allowing managers to have a wider span of control and more direct supervision over their subordinates. Therefore, the statement that hierarchical structures are tall with many levels of responsibility, and flat structures have fewer levels of responsibility, is true.Rate this question:
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- 35.
The difference between hierarchical and flat organisation structures is that flat structures are tall with many levels of responsibility, and hierarchical structures have fewer levels of responsibility thereby giving managers a greater span of control.
- A.
True
- B.
False
Correct Answer
B. FalseExplanation
The explanation for the given answer is that the statement is incorrect. The difference between hierarchical and flat organization structures is actually the opposite of what is stated. Hierarchical structures have many levels of responsibility and a narrow span of control, while flat structures have fewer levels of responsibility and a wider span of control.Rate this question:
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- 36.
Groups that are not an official part of the organisation but arise from people having similar interests are known as
- A.
Specialist interest groups
- B.
Lobbying groups
- C.
Informal groups
- D.
Friendship groups
Correct Answer
C. Informal groupsExplanation
Informal groups are groups that form within an organization based on common interests or relationships among individuals. Unlike official groups, they are not recognized or established by the organization itself. Informal groups can arise spontaneously and may have varying levels of formality and structure. These groups can provide a platform for individuals to connect, share ideas, and collaborate outside of the formal organizational structure. They can also have an impact on the dynamics and culture of the organization.Rate this question:
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- 37.
Which of the options below is the most likley benefit of delayering an organisation?
- A.
Wider spans of control
- B.
Increased delegation to subordinates
- C.
Shorter chains of command
- D.
Improved motivation
Correct Answer
C. Shorter chains of commandExplanation
Delayering an organization refers to reducing the number of hierarchical levels within the company. This can lead to shorter chains of command, meaning that there are fewer levels of management between the top and bottom of the organization. Shorter chains of command can result in faster decision-making, improved communication, and increased efficiency. With fewer layers of management, information can flow more freely, allowing for quicker responses to issues and increased flexibility. This can ultimately lead to a more agile and responsive organization.Rate this question:
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- 38.
The person at the top of the hierarchy is known as the
- A.
Executive director
- B.
Non-executive director
- C.
Managing director
- D.
Governing director
Correct Answer
C. Managing directorExplanation
The person at the top of the hierarchy is known as the managing director. This individual is responsible for overseeing the overall operations and performance of the organization. They have the authority to make important decisions and set strategic goals for the company. The managing director typically reports to the board of directors and is accountable for achieving the organization's objectives. They play a crucial role in leading and managing the company's resources, employees, and finances to ensure its success and growth.Rate this question:
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- 39.
Which option is an advantage of a wider span of control?
- A.
Communication is enhanced as there are more managers
- B.
It is more cost effective due to less hierarchical levels
- C.
Workers become more motivated as there are more promotional opportunities
- D.
Managers are freed to deal with other tasks
Correct Answer
B. It is more cost effective due to less hierarchical levelsExplanation
A wider span of control means that there are fewer levels of management in the organizational hierarchy. This reduces the number of managers needed, resulting in cost savings for the organization. With fewer hierarchical levels, there is less need for additional managerial positions, which can save on salary and benefits expenses. This advantage of cost-effectiveness makes a wider span of control a favorable option for organizations.Rate this question:
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- 40.
Decentralisation means
- A.
Orders are sent from the senior management team as they need to oversee corporate strategy
- B.
Passing responsibility and authority away from the senior management team to individual departments
- C.
Removing decision-making power from managers
- D.
Informal communication between staff from various departments
Correct Answer
B. Passing responsibility and authority away from the senior management team to individual departmentsExplanation
Decentralization refers to the process of transferring responsibility and authority from the senior management team to individual departments. This means that decision-making power is distributed among various departments, allowing them to make decisions and take responsibility for their own actions. This approach promotes autonomy and empowers departments to respond quickly to specific needs and challenges, rather than relying solely on the senior management team. It also fosters a sense of ownership and accountability within each department, leading to increased efficiency and effectiveness in achieving organizational goals.Rate this question:
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- 41.
Who is a senior manager directly accountable to?
- A.
Directors
- B.
Chief executive
- C.
Supervisors
- D.
Shareholders
Correct Answer
A. DirectorsExplanation
A senior manager is directly accountable to the directors of the company. Directors are responsible for overseeing the overall operations and strategic direction of the organization. They provide guidance and make important decisions that impact the company's performance. As a senior manager, being directly accountable to the directors means that they have to report to them, seek their approval, and ensure that their actions align with the company's objectives and policies. This accountability ensures that the senior manager is held responsible for their actions and performance, and helps maintain transparency and effective communication within the organization.Rate this question:
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- 42.
As a business grows, managers will need to relinquish some of their roles and responsibilities. This is kn own as
- A.
Delegation
- B.
Empowerment
- C.
Entrustment
- D.
Laissez-faire
Correct Answer
A. DelegationExplanation
As a business grows, managers will need to delegate some of their roles and responsibilities to other team members. Delegation involves assigning tasks and authority to others, allowing them to take on more responsibility and decision-making power. This allows managers to focus on higher-level tasks and strategic planning, while also fostering the development and growth of their team members. Empowerment and entrustment are similar concepts, but delegation specifically refers to the act of assigning tasks and responsibilities. Laissez-faire, on the other hand, refers to a hands-off approach where managers provide minimal guidance and control.Rate this question:
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- 43.
Advantages of matrix systems do not include
- A.
Flexibility
- B.
Cross functional teamworking
- C.
Decentralised decision-making
- D.
Improved control
Correct Answer
D. Improved controlExplanation
The advantages of matrix systems include flexibility, cross-functional teamworking, and decentralized decision-making. However, improved control is not considered an advantage of matrix systems. Matrix systems are known for their flexibility in allowing individuals to work on multiple projects and collaborate across different departments. They also promote cross-functional teamworking, where employees from different functional areas come together to work on a common goal. Additionally, matrix systems encourage decentralized decision-making, empowering employees to make decisions and take ownership of their work. While matrix systems offer these benefits, improved control is not typically associated with them, as they prioritize flexibility and collaboration over centralized control.Rate this question:
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- 44.
Which of the following is a drawback of using matrix organisational structures?
- A.
Taller hierarchical structures
- B.
Narrower spans of control
- C.
Conflicting interest from having more than one manager
- D.
Reduced employee empowerment
Correct Answer
C. Conflicting interest from having more than one managerExplanation
A drawback of using matrix organizational structures is the conflicting interest that arises from having more than one manager. In a matrix structure, employees often report to both a functional manager and a project manager, leading to potential conflicts in decision-making, priorities, and resource allocation. This can create confusion and power struggles within the organization, making it difficult for employees to understand their roles and responsibilities. Additionally, conflicting interests may lead to delays in decision-making and hinder the overall efficiency and productivity of the organization.Rate this question:
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- 45.
Which type of organisational structure is based on personal relationships and social networks?
- A.
Matrix
- B.
Hierarchical
- C.
Informal
- D.
Centralised
Correct Answer
C. InformalExplanation
An informal organizational structure is based on personal relationships and social networks. In this type of structure, communication and decision-making flow through informal channels rather than following a formal hierarchy. It allows for more flexibility, creativity, and collaboration among employees. Informal structures often develop naturally within organizations as employees form relationships and networks based on common interests or goals. This type of structure can be beneficial for fostering innovation and teamwork within the organization.Rate this question:
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- 46.
Drawbacks of informal organisational structures do not include
- A.
The spreading of rumours
- B.
Reduced bureaucracy
- C.
Misinterpretation of correct information
- D.
Confidential information being exposed
Correct Answer
B. Reduced bureaucracyExplanation
The correct answer is "Reduced bureaucracy." Informal organizational structures are typically characterized by a lack of formal rules and procedures, which can lead to a more flexible and agile work environment. However, one of the drawbacks of such structures is the absence of a formalized bureaucracy, which can result in a lack of clear roles and responsibilities, difficulty in decision-making, and a potential for chaos or confusion within the organization.Rate this question:
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- 47.
Which term is used to describe the act of transferring a busines function or activity to an organisation operating overseas?
- A.
Decentralisation
- B.
Offshoring
- C.
Outsourcing
- D.
Globalisation
Correct Answer
B. OffshoringExplanation
Offshoring refers to the act of transferring a business function or activity to an organization operating overseas. This involves relocating certain operations or processes to another country, often to take advantage of lower costs, access to specialized skills, or other strategic reasons. Offshoring allows companies to tap into global resources and expand their operations beyond their home country. It is different from outsourcing, which involves contracting out specific tasks or services to external third-party vendors, whether domestic or international. Globalization, on the other hand, refers to the increasing interconnectedness and integration of economies and societies worldwide. Decentralization refers to the distribution of authority and decision-making across different levels of an organization.Rate this question:
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- 48.
Which term is used to describe the system of organising people within a business by rank?
- A.
Hierarchy
- B.
Span of control
- C.
Chain of command
- D.
Delegation
Correct Answer
A. HierarchyExplanation
Hierarchy is the correct answer because it refers to the system of organizing people within a business by rank. It establishes a clear chain of command and levels of authority, where individuals are ranked according to their position and power within the organization. This hierarchical structure helps in defining roles, responsibilities, and decision-making processes within the business.Rate this question:
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- 49.
Which type of flexible organisational structure is based on different departments temporarily working together to achieve an organisational objective?
- A.
Decentralised
- B.
Outsourcing
- C.
Matrix management
- D.
Shamrock organisation
Correct Answer
C. Matrix managementExplanation
Matrix management is a type of flexible organizational structure where different departments temporarily work together to achieve an organizational objective. This structure allows employees to report to both a functional manager and a project manager, allowing for a more collaborative and cross-functional approach to work. In a matrix management structure, teams are formed based on specific projects or objectives, and individuals from different departments come together to contribute their expertise and skills. This structure promotes flexibility, communication, and the efficient use of resources.Rate this question:
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- 50.
Which of the following features applies to organisations wioth flat structures?
- A.
A large number of managers
- B.
Suitable when employees are multi-skilled
- C.
Good opportunities for promotion of staff
- D.
Narrow spans of control
Correct Answer
B. Suitable when employees are multi-skilledExplanation
Flat structures are characterized by a small number of hierarchical levels and a wide span of control, meaning that managers oversee a larger number of employees. This structure is suitable when employees are multi-skilled because it allows for greater flexibility and collaboration among employees. It also promotes a more decentralized decision-making process and encourages employee empowerment. However, flat structures may not provide as many opportunities for staff promotion compared to hierarchical structures with multiple levels of management.Rate this question:
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Current Version
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Feb 14, 2023Quiz Edited by
ProProfs Editorial Team -
Nov 18, 2012Quiz Created by
Catherine Halcomb
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