Which of the following statements is true about the simple structure?
A) It is very expensive to operate.
B) It is characterized by a high degree of formalization.
C) It becomes increasingly inadequate as an organization grows.
D) It is most widely adopted in large businesses in which the manager and owner are different.
E) It is characterized by a narrow span of control.

Question

Quizplus · Accepted Answer

A simple structure has a low degree of departmentalization, wide spans of control, authority centralized in a single person, and little formalization. It's fast, flexible, and inexpensive to operate, and accountability is clear. One major weakness is that it's difficult to maintain in anything other than small organizations. It becomes increasingly inadequate as an organization grows because its low formalization and high centralization tend to create information overload at the top.

Which of the Following Statements Is True About the Simple