CAIB 4 CHAPTER 2 - EXAM WITH 100% CORRECT ANSWERS|GRADED A+
What are the 3 elements to organizing effectively? - {ANSWER}1. creating an organizational
structure
2. defining employee relationships
3. establishing position descriptions
What is an Organizational structure? - {ANSWER}An organization is formed when two or
more people join together to achieve an objective
It becomes a formal organization when the process of management is incorporated to
direct the activities of the people toward achieving the objectives
The degree to which the organizational structure is formalized depends on the scope and
complexity of the objectives
#$%^&
What are the 3 basic forms of organizational structure? - {ANSWER}1. line organization *()__+
2. functional organization
2. Line and staff organization
What is a line organization - {ANSWER}authority is concentrated in those managers who are
directly responsible for achieving the brokerage's goals. Authority flows vertically
downward from the most senior executive officer, and responsibility flows upward to the
most senior position Best suited to a smaller brokerage in which senior management
personally directs the activities of subordinates
What are the advantages and disadvantages of a line organization? -
{ANSWER}Advantages:
Simple
Clear delegation of authority
Quick decision making
Disadvantages:
Managers must be fully versed in all areas to make decisions
, CAIB 4 CHAPTER 2 - EXAM WITH 100% CORRECT ANSWERS|GRADED A+
Power is held at the hop because senior management needs to be involved in all decisions
creating too many activities for too few managers
Stifles innovation by limiting the growth and development of other employees
What is a functional organization? - {ANSWER}The organization's activities are grouped
together by function, the operation becomes departmentalized. Departments are headed
by specialists who have authority over their specific are of operation. Employees report to
multiple managers, typically both a functional manager and a project or product manager.
This structure is also known as the matrix system of management.
What are the advantages and disadvantages of a functional organization? -
{ANSWER}Advantages:
Provides employees with expert advice #$%^&
Decisions are made by management specialists *()__+
Disadvantages
Employees have more than one boss, which can lead to conflicting instructions when
authority overlaps
When a decision doesn't clearly belong to one manager, it can be slow, as employees might
be sent from one manager to another Too many mangers giving instructions can distract
employees from focusing on serving their clients
Very difficult to implement
What is a Line and Staff organization? - {ANSWER}combines the strengths of both the line
and the functional forms of organization and is best suited for larger organizations. The
sales, service, and financial management functions of the brokerage are treated as line
management functions - those who support the line functions are considered staff.
Authority flows vertically with line managers making decisions and having direct control
over their departments, while staff members offer expertise and assistance to help with
decision-making.
What are the 3 elements to organizing effectively? - {ANSWER}1. creating an organizational
structure
2. defining employee relationships
3. establishing position descriptions
What is an Organizational structure? - {ANSWER}An organization is formed when two or
more people join together to achieve an objective
It becomes a formal organization when the process of management is incorporated to
direct the activities of the people toward achieving the objectives
The degree to which the organizational structure is formalized depends on the scope and
complexity of the objectives
#$%^&
What are the 3 basic forms of organizational structure? - {ANSWER}1. line organization *()__+
2. functional organization
2. Line and staff organization
What is a line organization - {ANSWER}authority is concentrated in those managers who are
directly responsible for achieving the brokerage's goals. Authority flows vertically
downward from the most senior executive officer, and responsibility flows upward to the
most senior position Best suited to a smaller brokerage in which senior management
personally directs the activities of subordinates
What are the advantages and disadvantages of a line organization? -
{ANSWER}Advantages:
Simple
Clear delegation of authority
Quick decision making
Disadvantages:
Managers must be fully versed in all areas to make decisions
, CAIB 4 CHAPTER 2 - EXAM WITH 100% CORRECT ANSWERS|GRADED A+
Power is held at the hop because senior management needs to be involved in all decisions
creating too many activities for too few managers
Stifles innovation by limiting the growth and development of other employees
What is a functional organization? - {ANSWER}The organization's activities are grouped
together by function, the operation becomes departmentalized. Departments are headed
by specialists who have authority over their specific are of operation. Employees report to
multiple managers, typically both a functional manager and a project or product manager.
This structure is also known as the matrix system of management.
What are the advantages and disadvantages of a functional organization? -
{ANSWER}Advantages:
Provides employees with expert advice #$%^&
Decisions are made by management specialists *()__+
Disadvantages
Employees have more than one boss, which can lead to conflicting instructions when
authority overlaps
When a decision doesn't clearly belong to one manager, it can be slow, as employees might
be sent from one manager to another Too many mangers giving instructions can distract
employees from focusing on serving their clients
Very difficult to implement
What is a Line and Staff organization? - {ANSWER}combines the strengths of both the line
and the functional forms of organization and is best suited for larger organizations. The
sales, service, and financial management functions of the brokerage are treated as line
management functions - those who support the line functions are considered staff.
Authority flows vertically with line managers making decisions and having direct control
over their departments, while staff members offer expertise and assistance to help with
decision-making.
