UPDATED Exam Questions and CORRECT
Answers
Where can structure be applied? - CORRECT ANSWER - Everywhere
Structure Defined - CORRECT ANSWER - Anything that is composed of parts arranged
together in some way
Organizing Defined - CORRECT ANSWER - The arranging of tasks, people, and other
resources to accomplish the work. (this requires structure)
3 Parts of Organizing - CORRECT ANSWER - 1)Work is divided up
2)Resources are arranged
3)Activities are coordinated
Example of Structure - CORRECT ANSWER - In 2001 Google was struggling due to lack of
structure, so they hired Eric Schmidt who then added structure.
Formal vs. Informal Structure - CORRECT ANSWER - Formal happens within the chain of
command, where informal happens outside the chain of command.
7 Elements of Organization Charts - CORRECT ANSWER - 1)Division of Work--Determine
Organization of business
2)Chain of Command--See who controls who
3)Span of Control--How many workers are controlled by a manager
4)Communication Flow--How divisions of labor communicate
5)Major Units--Major Units of the business
6)Staff & Line Reporting--Result of who works on the products
, 7)Levels of Management--Shown in a vertical manner
2 Types of Span of Control - CORRECT ANSWER - Tall, Flat
Tall Span of Control - CORRECT ANSWER - Many levels, anti-innovation oriented. Large
businesses
Flat Span of Control - CORRECT ANSWER - A lot of people reporting to one individual.
Startups & entrepreneurial businesses.
Staff Reporting - CORRECT ANSWER - Designs logistics and provides support to the line
workers. Staff Professionals play important support roles, but do not directly bring in revenue to
company.
Ex. Accounting, Human Resources, Legal Workers
Line Reporting - CORRECT ANSWER - Works directly in the line of the objectives for the
company. Line Professionals are responsible for the core business functions of developing
products or the selling of products.
Ex. Product Managers, Marketing Employees
What are the 5 types of structure? - CORRECT ANSWER - Functional, Divisional, Matrix,
Cross-Functional, Network
Functional Structure - CORRECT ANSWER - Groups together people who have similar skills
and interests
Divisional Structure - CORRECT ANSWER - Groups people together by product, customer
type, or geographical area.