- 20 Marks
BMF – Nov 2014 – L1 – SB – Q2 – Business and Organizational Structures and Choices
Explain various organizational structures and the advantages and disadvantages of decentralisation.
Question
a. In today’s business environment, organizational structure is an important element of business management because the way an organization is structured will go a long way in determining the organization’s efficiency and effectiveness.
Explain briefly the following forms of organizational structure: i. Centralisation
ii. Decentralisation
iii. Matrix
iv. Network organisation (Total 10 Marks)
b. Continuous pressure on modern business organizations has made many top managers concede more authority to middle-level and lower-level managers.
State FIVE advantages and FIVE disadvantages of decentralisation. (10 Marks)
(Total 20 Marks)
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