Which of the Following Is True About the Height of an Organization

question 14

Multiple Choice

Which of the following is true about the height of an organization chart?

• A) An organization's structure should be built from bottom to top to ensure that appropriate spans of management are achieved at all levels.
• B) Span of management usually has no influence on the height of an organization chart.
• C) Increasing spans of management to eliminate certain management positions and thereby reducing salary expenses will help the organization achieve long-tern success.
• D) Normally, the greater the height of the organization chart, the smaller the span of management.
• E) Overall, managers seem to be using taller organizational structures now than in the past.

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Definitions:

Contribution Margin

The excess of sales over variable costs; the excess of manufacturing margin over variable selling and administrative expenses.

Bottleneck Hour

A term used in production and manufacturing to describe the hour or period where the flow of processes slows down due to a limitation in output capabilities, impacting overall productivity.

Bottleneck

A point of congestion in a production system that occurs when workloads arrive too quickly for the production process to handle.

Fixed Capacity

The maximum output that a facility can produce in a given period under normal circumstances, without changing the physical setup.