Which organizational structure is likely to have the most decentralize

QUESTION

Which organizational structure is likely to have the most decentralized authority?

A) divisional structure: geographic divisions
B) divisional structure: customer divisions
C) functional structure
D) matrix structure
E) hybrid structure

ANSWER

Answer: D
Explanation: D) 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.