Organizational Structure: Quiz :Designing the Organization (Strategic Leadership and Management Specialization) Answers 2025

Question 1

Vertical information flow is typically associated with efficiency and adaptation, whereas horizontal information flow is typically associated with coordination and flexibility.

❌ True
✅ False

Explanation:
Vertical information flow is mainly linked to control and efficiency, while horizontal information flow supports coordination, learning, and adaptability. The statement incorrectly pairs vertical flow with adaptation.

Question 2

According to contingency theory, the best structure is contingent upon contextual factors when making design choices.

✅ True
❌ False

Explanation:
Contingency theory states there is no one best structure—the optimal structure depends on factors like environment, strategy, size, and technology.

Question 3

Contingency theory emphasizes that organizational structure has a direct impact on organizational performance.

✅ True
❌ False

Explanation:
Performance depends on the fit between structure and context, making structure a key determinant of organizational effectiveness.

Question 4

Benefits of a functional structure include all EXCEPT:

❌ More efficient use of resources
✅ Internal focus
❌ Deep functional expertise
❌ Greater ability to uphold standards of quality

Explanation:
Internal focus is typically considered a drawback, not a benefit, because it can reduce responsiveness to external changes.

Question 5

Within a functional structure, being internally focused makes it easier to adapt to the changing external environment and innovate.

❌ True
✅ False

Explanation:
Internal focus in functional structures often slows innovation and external adaptation due to silos.

Question 6

Advantages of a divisional structure include all EXCEPT:

❌ Customer focused
❌ Better coordination between functions
❌ Greater ability to adapt to a dynamic environment
✅ Greater consistency across products
❌ Increased accountability for profits

Explanation:
Divisional structures often reduce consistency across products because each division operates semi-independently.

Question 7

Divisional structures are appropriate in all contexts EXCEPT:

❌ Larger firms with many product offerings
❌ Firms in complex and changing environments
❌ Firms serving distinct markets
❌ Firms operating in different geographic locations
✅ Firms with a low-cost strategy

Explanation:
Divisional structures are costly and duplicative, making them less suitable for low-cost strategies.

Question 8

Heavy conflict resolution demands are a disadvantage of the matrix structure.

✅ True
❌ False

Explanation:
Matrix structures create dual authority, often leading to role conflict and increased coordination costs.

Question 9

Network structures often result in loss of organizational control and lower employee loyalty.

✅ True
❌ False

Explanation:
Because work is outsourced or decentralized, network structures can reduce control and long-term employee attachment.

Question 10

A hybrid structure is a combination of two or more structures.

✅ True
❌ False

Explanation:
Hybrid structures blend elements of functional, divisional, matrix, or network structures to fit organizational needs.

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