SPMT 262 Exam 2
What is organizational structure? - Answer -a system that outlines how certain activities are directed in
order to achieve the goals of an organization
What uses organizational structure? - Answer -Businesses of all shapes and sizes use it heavily. They
define a specific hierarchy within an organization.
Centralized - Answer -Defined chain of command. Ex. Military
decentrailized - Answer -allows companies to remain agile, fast, and adaptable with almost every
employee receiving a high level of personal agency
What are the four types of organizational structure? - Answer -1. Functional
2. Divisional or Multidivisional
3. Flatarchy
4. Matrix
Functional Structure - Answer -Breaks up a company based on the specilization of its workforce. Most
small to medium sized businesses use this.
, Divisional or Multidivisional Structure - Answer -a company that uses this method structures its
leadership based on the projects, products, subsidiaries they operate
Flatarchy Structure - Answer -it flattens the hierarchy and the chain of command and gives its employees
a lot of autonomy. Used among many Start up companies
Matrix Structure - Answer -This structure matrixes employees across different superiors, divisions, or
department. Example is an employee may have duties in both sales and customer service
What is responsibility? - Answer -is ones obligation to achieve objectives by performing required
activities
What is authority? - Answer -is the right to make decisions, issue orders, and use resources
What is delegation? - Answer -Involves assigning responsibility and authority for accomplishing
objectives
What is flexibility? - Answer -involves understanding that there are often exceptions to the rules
Organization Chart - Answer -lays out the organizations management hierarchy and departments and
their working relationships
What is the span of management/span of control? - Answer -has to do with how many employees report
directly to their manager
Flat vs. Tall Organizations - Answer -Flat organizations have fewer layers of management with wide
spans of control
Tall organizations have many layers of management with narrow spans of control
When does division of labor occur? - Answer -when jobs are organized by specialty. for example
accountants working in accountant departments
What is organizational structure? - Answer -a system that outlines how certain activities are directed in
order to achieve the goals of an organization
What uses organizational structure? - Answer -Businesses of all shapes and sizes use it heavily. They
define a specific hierarchy within an organization.
Centralized - Answer -Defined chain of command. Ex. Military
decentrailized - Answer -allows companies to remain agile, fast, and adaptable with almost every
employee receiving a high level of personal agency
What are the four types of organizational structure? - Answer -1. Functional
2. Divisional or Multidivisional
3. Flatarchy
4. Matrix
Functional Structure - Answer -Breaks up a company based on the specilization of its workforce. Most
small to medium sized businesses use this.
, Divisional or Multidivisional Structure - Answer -a company that uses this method structures its
leadership based on the projects, products, subsidiaries they operate
Flatarchy Structure - Answer -it flattens the hierarchy and the chain of command and gives its employees
a lot of autonomy. Used among many Start up companies
Matrix Structure - Answer -This structure matrixes employees across different superiors, divisions, or
department. Example is an employee may have duties in both sales and customer service
What is responsibility? - Answer -is ones obligation to achieve objectives by performing required
activities
What is authority? - Answer -is the right to make decisions, issue orders, and use resources
What is delegation? - Answer -Involves assigning responsibility and authority for accomplishing
objectives
What is flexibility? - Answer -involves understanding that there are often exceptions to the rules
Organization Chart - Answer -lays out the organizations management hierarchy and departments and
their working relationships
What is the span of management/span of control? - Answer -has to do with how many employees report
directly to their manager
Flat vs. Tall Organizations - Answer -Flat organizations have fewer layers of management with wide
spans of control
Tall organizations have many layers of management with narrow spans of control
When does division of labor occur? - Answer -when jobs are organized by specialty. for example
accountants working in accountant departments
