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Mass production, which came into existence at the time of the industrial revolution, is an example of an organisational structure based on:


A) function.
B) market type.
C) geographic location.
D) product type.
E) matrix design.

F) A) and E)
G) None of the above

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For an organisation like Nestlé, organising by geographic location could make sense because:


A) it would allow the organisation to utilise the cheaper labour offered in other countries.
B) the organisation has many different production plants in one country.
C) it would allow the organisation to customise its offerings to local preferences and regulations.
D) the organisation is foreign-owned.
E) All of these responses are correct.

F) A) and D)
G) C) and E)

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For a financial planning business that offered its customers three distinct services - wealth creation, risk management planning and tax minimisation - the most appropriate organisation structure might be:


A) one designed around function.
B) one designed around customer type.
C) one designed around geographic locations.
D) one designed around product.
E) All of these responses are correct.

F) A) and D)
G) C) and D)

Correct Answer

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Organisation charts show:


A) the levels in an organisation's hierarchy.
B) the scopes of control of the various managers within an organisation.
C) the links between employees and functions in an organisation.
D) the reporting relationships between employees and managers in an organisation.
E) All of these responses are correct.

F) B) and D)
G) C) and D)

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To create capabilities-based competitive advantage, what structural characteristics must an organisation display?


A) Hierarchical and top-down decision making
B) Bureaucratic and process-controlled decision making
C) Flat and fluid decision making
D) Centralised control and decision making
E) Traditional production-line specialisation of roles in which change is difficult

F) None of the above
G) B) and E)

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Which of the following is an organisation in which a matrix structure would be inappropriate?


A) A civil engineering business
B) An architecture firm
C) A construction company
D) A government department with a hierarchical structure and strict lines of reporting
E) All of these responses are correct.

F) None of the above
G) All of the above

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In a flatter organisational structure, a manager will be more likely to:


A) directly supervise fewer employees.
B) indirectly supervise fewer employees.
C) directly supervise a greater number of employees.
D) indirectly supervise a greater number of employees.
E) supervise no employees.

F) All of the above
G) C) and D)

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The layers contained within an organisation's structure are depicted in its:


A) vision statement.
B) organisational chart.
C) organisational charter.
D) mission statement.
E) code of ethics.

F) B) and C)
G) B) and E)

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Where an organisation overlays a core process onto a functional structure, or a functional structure onto a process structure, it is known as a hybrid structure.

A) True
B) False

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While holistic organisations may be more fulfilling to work for, and add greater meaning to employees' lives, it is also likely that they will demand higher productivity and increased shareholder value from their employees in return.

A) True
B) False

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