IB Business And Management Human Resources: 2.2 Organisational Structure
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- 1.Which of the following is not a valid reason why a firm may choose to delayer its organisational 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
- 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
- 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
- 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
- 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
- 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
- 7.The official path that instructions are passed along is termed the 'chain of command'.
- A.
True
- B.
False
- 8.The official path that instructions are passed along is termed the 'span of control'.
- A.
True
- B.
False
- 9.Flat organisational structures help improve communication.
- A.
True
- B.
False
- 10.Tall organisational structures help improve communication.
- A.
True
- B.
False
- 11.The person directly above you in an organisation is called your 'line manager'.
- A.
True
- B.
False
- 12.The person directly above you in an organisation is called your 'chain of command manager'.
- A.
True
- B.
False
- 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
- 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
- 15.Removing layers in the hierarchy to cut costs is termed
- A.
Restructuring
- B.
Downsizing
- C.
Delayering
- D.
Redundency
- 16.Teams formed naturally, through unofficial means are termed the informal organisation.
- A.
True
- B.
False
- 17.Teams formed naturally, through unofficial means are termed the teamworking organisation.
- A.
True
- B.
False
- 18.A span of control that encompasses many people is called
- A.
Flat
- B.
Wide
- C.
Narrow
- D.
Tall
- 19.A wide span of control is one that encompasses many people.
- A.
True
- B.
False
- 20.A narrow span of control is one that encompasses many people.
- A.
True
- B.
False
- 21.A firm with a flat organisational structure has few layers of management.
- A.
True
- B.
False
- 22.The span of control is inversely realted to the number of layers in an organisation.
- A.
True
- B.
False
- 23.A wide span of control requires effective delegation of authority and responsibility.
- A.
True
- B.
False
- 24.Delegation comes with extra financial rewards; e.g., pay rises.
- A.
True
- B.
False
- 25.Responsibility cannot be delegated; i.e., it always remains the authority of the line manager.
- A.
True
- B.
False
- 26.Authority cannot be delegated to subordinates.
- A.
True
- B.
False
- 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
- 28.Line managers have a wide span of control in tall hierarchical structures.
- A.
True
- B.
False
- 29.A driving force for delayering is to improve communication flows.
- A.
True
- B.
False
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 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
- 41.Who is a senior manager directly accountable to?
- A.
Directors
- B.
Chief executive
- C.
Supervisors
- D.
Shareholders
- 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
- 43.Advantages of matrix systems do not include
- A.
Flexibility
- B.
Cross functional teamworking
- C.
Decentralised decision-making
- D.
Improved control
- 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
- 45.Which type of organisational structure is based on personal relationships and social networks?
- A.
Matrix
- B.
Hierarchical
- C.
Informal
- D.
Centralised
- 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
- 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
- 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
- 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
- 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
- 51.The organisational chart shows:
- A.
The chain of command
- B.
The path of delegation
- C.
Who has overall responsibility for decision-making
- D.
Current matrix project teams
- E.
The formal relationships between people and departments
- F.
Formal channels of communication
- G.
The informal organisation
- 52.Level of ___________: A stage of the organisation structure at which the personnel on it have equal status and authority
- 53._________ __ _________: Refers to the number of subordinates that are controlled by a manager; i.e., the number of people who are *directly* accountable to the manager
- 54.__________ __ ________: This is the route through which authority is passed down through an organisation - from the chief executive and the board of directors
- 55.Flat (less hierarchical) organisational structure: An organisational structure that has few levels of hierarchy and a ______ span of control where managers will be responsible for many subordinates and many management functions will be delegated
- 56._____________: Passing authority down the organisational hierarchy
- 57.______________: The removal of one or more of the levels of hierarchy from an organisational structure
- 58.Advantages of delayering:
- A.
Reduces business costs
- B.
Shortens the chain of command and should improve communication through the organisation
- C.
Could be one-off costs of making managers redundant; e.g., redundancy payments
- D.
Increased workload for managers who remain
- E.
Increases the span of control and opportunities for delegation
- F.
May increase workforce motivation due to less remoteness from top management and greater chance of having more responsible work to perform
- G.
Fear that redundancies might be used to cut costs could reduce the sense of security of the whole workforce
- 59.Disadvantages of delayering:
- A.
Shortens the chain of command and should improve communication through the organisation
- B.
Reduces business costs
- C.
Could be one-off costs of making managers redundant; e.g., redundancy payments
- D.
Increased workload for managers who remain
- E.
Increases the span of control and opportunities for delegation
- F.
May increase workforce motivation due to less remoteness from top management and greater chance of having more responsible work to perform
- G.
Fear that redundancies might be used to cut costs could reduce the sense of security of the whole workforce
- 60.________________: An organisational system with standardised procedures and rules
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