Question 1: Define the term 'organizational structure' and explain its purpose in a business.

Answer: Organizational structure refers to how tasks, responsibilities, and authority are arranged within a business. Its purpose is to coordinate activities, clarify roles, and improve efficiency.

Question 2: List three common types of organizational structures used by businesses and briefly describe each.

Answer: 1. Hierarchical structure: A tall structure with many levels of management. 2. Flat structure: Fewer levels of management, promoting more employee involvement. 3. Matrix structure: Employees report to both a functional manager and a project manager, enabling flexibility.

Question 3: Describe a scenario in which a business might choose a flat organizational structure. Explain your reasoning.

Answer: A small start-up business might choose a flat structure to promote communication and quick decision-making, as there are fewer management layers, making it easier for employees to collaborate and innovate.

Question 4: Explain the advantages of a hierarchical organizational structure.

Answer: Advantages include clear authority lines, defined roles, and responsibilities, which can lead to efficient decision-making and accountability.

Question 5: Explain the disadvantages of a flat organizational structure.

Answer: Disadvantages include potential confusion over authority, limited career progression, and possible challenges in managing larger teams effectively.

Question 6: Imagine a business with multiple departments such as sales, marketing, and production. Sketch a simple diagram showing a departmental (functional) structure. Use large blank space for your drawing.

Answer: A correct sketch would show a top box labeled 'Managing Director' with lines branching down to separate boxes labeled 'Sales Department', 'Marketing Department', and 'Production Department', each representing a different functional area.

Question 7: Describe how a matrix organizational structure operates, including its advantages and potential challenges.

Answer: A matrix structure involves employees reporting to both a functional manager and a project manager. This allows for flexibility and efficient resource use, but can cause confusion over authority and lead to conflicts between managers.

Question 8: A company is expanding rapidly and needs to improve communication across departments. Which type of organizational structure might be most suitable? Justify your answer.

Answer: A matrix structure might be suitable because it promotes collaboration across departments and allows for flexible resource sharing, which is useful during rapid expansion.

Question 9: Discuss the impact of organizational structure on employee motivation and morale.

Answer: A clear and well-organized structure can motivate employees by providing clear roles and opportunities for advancement, while poor structure may cause confusion, frustration, and low morale.

Question 10: Draw a simple chart illustrating a chain of command in a tall hierarchical structure. Use large blank space for your drawing.

Answer: The chart should show a top box labeled 'Chief Executive Officer', with lines descending to boxes labeled 'Senior Managers', then 'Managers', and finally 'Employees' at the bottom, illustrating clear reporting lines.