Principles of Management CLEP Practice Exam 2025 - Free Management Practice Questions and Study Guide

Question: 1 / 400

What is the primary purpose of organizational structure?

To increase employee satisfaction

To outline financial expenditures

To outline how activities are directed to achieve goals

The primary purpose of organizational structure is to outline how activities are directed to achieve goals. This framework is essential for establishing clear roles, responsibilities, and relationships among team members and departments. By defining how tasks are coordinated and who reports to whom, organizational structure provides a pathway for effective communication and collaboration. It also helps in streamlining processes to ensure that resources are utilized efficiently, which ultimately supports the organization’s objectives and goals.

While elements such as employee satisfaction, financial expenditures, and corporate culture may be influenced by the organizational structure, they are not its primary focus. Instead, the structure itself serves as a backbone that facilitates the coordination of efforts towards strategic goals, ensuring that the organization operates smoothly and effectively.

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To establish corporate culture

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