4.1 Organisational structures

• A functional organizational structure is organized by business function
• One advantage of a functional structure is specialization and efficiency
• What factors influence the choice of organizational structure?

  Size, complexity, goals
• What is a key disadvantage of a matrix structure?

  Conflicting reporting lines
• How does business size influence the choice of organizational structure?

  Larger businesses use complex structures
• Larger businesses tend to use more complex structures like divisional or matrix.


  True
• Organisational structure refers to the formal system of task and authority relationships
• Divisional structures offer better adaptation to market changes compared to functional structures.


  True
• Divisional structures are better suited for businesses that need to adapt to change
• What does the term "organizational structure" refer to?

  Task and authority relationships
• What two structures does a matrix organizational structure combine?

  Functional and divisional
• A matrix structure allows for cross-functional collaboration but can lead to conflicting reporting lines.


  True
• A divisional structure is organized by product, service, or geographical region.

  True
• Functional structures can lead to a silo mentality due to lack of coordination between departments.

  True
• The choice of organizational structure depends on factors like the size, complexity, and goals
• The organizational structure must be tailored to the specific needs and context of the business.


  True
• Order the advantages of a functional organizational structure:

  1️⃣ Specialization

  2️⃣ Efficiency

  3️⃣ Clear career paths
• Functional structures often suffer from poor cross-functional coordination.

  True
• A divisional organizational structure is organized by product, service, or geographical region.


  True
• What is a potential disadvantage of a divisional structure?

  Duplication of resources
• A functional structure is organized by business function
• A divisional structure promotes better adaptation to market changes
• Businesses with diverse products or services may benefit from a divisional or matrix structure.
• Businesses with diverse products or operating in multiple markets may benefit from divisional or matrix
• Match the type of organizational structure with its definition:

  Functional ↔️ Organized by business function

  Divisional ↔️ Organized by product, service, or region

  Matrix ↔️ Combines functional and divisional structures
• What business goal does a functional structure primarily promote?

  Efficiency
• Which organizational structure aligns with business goals by promoting operational efficiency?

  Functional