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

Answer: Organizational structure refers to how activities such as task allocation, coordination, and supervision are directed toward achieving organizational goals. It is important because it clarifies roles, improves communication, and enhances efficiency.

Question 2: Describe two common types of organizational structures used in businesses today.

Answer: Two common types are the hierarchical structure, where authority is from top to bottom in levels, and the flat structure, which has few levels of management and promotes a more collaborative environment.

Question 3: Identify one advantage and one disadvantage of a tall organizational structure.

Answer: An advantage is clear supervision and defined responsibilities. A disadvantage is that it can slow decision-making due to multiple management layers.

Question 4: Imagine a small startup company. Which type of organizational structure would likely suit it best and why?

Answer: A flat structure would suit a small startup because it promotes quick decision-making, flexibility, and close communication among team members.

Question 5: Explain how a matrix organizational structure differs from a functional structure.

Answer: A matrix structure involves employees reporting to both a functional manager and a project manager, facilitating collaboration across functions. A functional structure organizes employees based on their specific roles or departments, such as marketing or finance.

Question 6: Draw a simple diagram illustrating a hierarchical organizational structure with at least four levels.

Answer: A correct sketch would show a top box labeled 'CEO', with lines descending to 'Senior Managers', then 'Managers', and finally 'Team Members' at the bottom, arranged in a pyramid shape.

Question 7: Describe a scenario where a decentralized organizational structure might be more effective than a centralized one.

Answer: A decentralized structure is more effective in a multinational company operating in different countries, as local managers can make decisions suited to their markets quickly.

Question 8: List two characteristics of a bureaucratic organizational structure.

Answer: Characteristics include strict rules and procedures, and a clear hierarchy of authority.

Question 9: Sketch a simple organizational chart for a medium-sized business with three departments: Sales, Production, and HR. Show reporting lines from the manager to team members.

Answer: The chart should have a 'Manager' at the top, with three branches downward labeled 'Sales Department', 'Production Department', and 'HR Department'. Each branch should lead to individual team members.

Question 10: Evaluate the impact of organizational structure on employee motivation.

Answer: An appropriate structure can improve motivation by providing clear roles, opportunities for advancement, and a sense of belonging. Conversely, rigid or unclear structures may lead to frustration and disengagement.

Question 11: Identify one potential problem of having a very flat organizational structure and suggest a solution.

Answer: One problem is role confusion due to lack of clear hierarchy. A solution is to define specific responsibilities and communication channels clearly.