Company ABC and Company XYZ are preparing for a merger but the two cur

QUESTION

Company ABC and Company XYZ are preparing for a merger but the two currently have very different organizational structures. Consequently, Lance has been hired as a consultant to reorganize the newly formed company.

He envisions the project-based company as having employees grouped together based on their function, with the possibility of being accountable to both a department supervisor and a project manager. A large number of team members with specialized knowledge will report to a small, centralized group of top managers. What type of organizational structure best matches Lance’s vision?
A) flat
B) matrix
C) horizontal
D) vertical
E) inverted

ANSWER

Answer: D
Explanation: D) A vertical organizational structure has multiple authority figures in charge and utilizes employees with specialized expertise.