ORGANIZATIONAL STRUCTURE
EXAM QUESTIONS AND ANSWERS
2026
How does planning assist a company? - ANSWERSEffective planning helps a company
avoid costly mistakes and seize opportunities.
The ethical tone that a top management team establishes can reap monetary rewards
only. - ANSWERSFalse
Which of the following planning activities involves two components: business
continuation and public communication? - ANSWERSContingency planning
Fathima, a CEO, sets guideposts that help managers in her organization define the
organization's desired performance in such areas as profitability, customer service,
growth, and employee satisfaction. In this scenario, Fathima is: - ANSWERSsetting
objectives
Decisions involving entering a new market, deleting a product from the line, or
developing a new product are examples of: - ANSWERSnonprogrammed decisions
____ is centered on the boss. - ANSWERSAutocratic Leadership
Managers use symbols, rituals, ceremonies, and stories to reinforce: -
ANSWERScorporate culture
What is true of management? - ANSWERSManagement is the process of achieving
organizational objectives through people and other resources.
What should managers do to create an effective organizational structure? -
ANSWERSEstablish clear expectations for employees
A grocery store chain authorizes its store managers to hire staff, organize promotional
events, and make decisions such as issuing store credit and processing refunds to
prevent the escalation of complaints. It also ensures that its sales staff is well equipped
to address most customer queries without deferring to the store manager.
Which characteristics does the grocery chain emphasize in its organizational structure
in this scenario? - ANSWERSDecentralization
Define tactical planning - ANSWERSImplementing activities specified by strategic plans