Which organizational structure has authority centralized in a single person, a flat hierarchy, few rules, and low work specialization?

Which organizational structure has authority centralized in a single person, a flat hierarchy, few rules, and low work specialization?

• A. Simple Structure
• B. Functional Structures
• C. Divisional Structure
• D. Matrix Structure

Answer: (A)

This item is about how organizational design shapes who makes decisions, how many levels of management exist, how formal the rules are, and how specialized people’s work is. A simple structure centers authority in one person, creating a very flat hierarchy with few layers. It relies on a small number of informal rules rather than extensive formal procedures, and it treats employees as generalists who handle a variety of tasks rather than specialized, narrowly defined roles. This combination supports quick, centralized decision-making and broad, flexible roles, which is why it fits when authority is concentrated in a single leader, the hierarchy is flat, rules are minimal, and specialization is low. The other structures don’t fit as well: in a functional structure, authority is distributed to managers over specific functions (like marketing, finance, operations), leading to more formalization and higher work specialization; a divisional structure organizes by product or region with multiple divisions each having their own functional specialists, increasing complexity; a matrix structure combines functional and project/product lines, creating dual reporting relationships and even more rules and roles.

This item is about how organizational design shapes who makes decisions, how many levels of management exist, how formal the rules are, and how specialized people’s work is. A simple structure centers authority in one person, creating a very flat hierarchy with few layers. It relies on a small number of informal rules rather than extensive formal procedures, and it treats employees as generalists who handle a variety of tasks rather than specialized, narrowly defined roles. This combination supports quick, centralized decision-making and broad, flexible roles, which is why it fits when authority is concentrated in a single leader, the hierarchy is flat, rules are minimal, and specialization is low.

The other structures don’t fit as well: in a functional structure, authority is distributed to managers over specific functions (like marketing, finance, operations), leading to more formalization and higher work specialization; a divisional structure organizes by product or region with multiple divisions each having their own functional specialists, increasing complexity; a matrix structure combines functional and project/product lines, creating dual reporting relationships and even more rules and roles.