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

Answer: An organizational structure is the way in which a business arranges its people and jobs to achieve its goals. Its purpose is to establish roles, responsibilities, and communication channels within the company.

Question 2: Identify and describe two common types of organizational structures used in businesses.

Answer: Two common types are: 1) Hierarchical structure, where authority is ranked from top to bottom in levels; 2) Flat structure, which has few levels of management and encourages employee involvement.

Question 3: Imagine a small local bakery. Would you expect it to have a tall or flat organizational structure? Explain your reasoning.

Answer: A small local bakery would likely have a flat structure because there are few employees, and it allows for quick decision-making and close supervision.

Question 4: List three advantages of a hierarchical organizational structure.

Answer: Advantages include clear authority lines, defined career paths, and easier management of large numbers of staff.

Question 5: List three disadvantages of a flat organizational structure.

Answer: Disadvantages include confusion over roles, less clear leadership, and potential for conflicts due to less defined authority.

Question 6: Describe a scenario where a matrix organizational structure might be beneficial for a business.

Answer: A matrix structure is useful in project-based work, such as a technology company working on multiple software projects simultaneously, where employees report to both project managers and functional managers.

Question 7: Explain the difference between a tall and a flat organizational structure in terms of decision-making.

Answer: In a tall structure, decision-making is centralized at higher levels of management, whereas in a flat structure, decision-making tends to be more decentralized and involves more employees.

Question 8: Draw a simple diagram of a hierarchical organizational structure for a small business with a owner, a manager, and three staff members.

Answer: A correct sketch would show the owner at the top, branching down to the manager, who then manages the three staff members. The diagram should clearly show the chain of command.

Question 9: Sketch a diagram of a flat organizational structure for a startup company with five employees.

Answer: A correct sketch would depict all five employees at the same level, with lines connecting them to each other, indicating shared responsibility, and no strict hierarchy.

Question 10: Identify two factors that influence the choice of organizational structure in a business.

Answer: Factors include the size of the business and the type of products or services offered.

Question 11: Why might a multinational corporation prefer a hierarchical structure over a flat one?

Answer: A multinational might prefer a hierarchical structure to manage complex operations across different countries, ensuring clear authority and control.