The text says that small firms with fewer than 100 employees are likel

QUESTION

The text says that small firms with fewer than 100 employees are likely to be the most centralized. Use what you’ve learned about organizational structure to support this statement.

What will be an ideal response?

ANSWER

Answer: The smaller the firm, the fewer layers of hierarchy there likely are. As companies increase in personnel size, they add layers of hierarchy, some of which are likely to represent more decentralized authority. Larger companies also are more likely to use a matrix structure, which often involves pulling together teams for a particular purpose and then disbanding the teams when the purpose is met. These teams represent more decentralized authority.
Explanation: The smaller the firm, the fewer layers of hierarchy there likely are. As companies increase in personnel size, they add layers of hierarchy, some of which are likely to represent more decentralized authority. Larger companies also are more likely to use a matrix structure, which often involves pulling together teams for a particular purpose and then disbanding the teams when the purpose is met. These teams represent more decentralized authority.