The organizational structure defines limits of managerial authority, areas of responsibility, and lines of reporting.

Question

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The organizational structure specifies the hierarchy of authority within an organization, delineating the roles, responsibilities, and reporting relationships among various employees and departments. This structure defines the limits of managerial authority, areas of responsibility, and lines of reporting, facilitating clear communication, decision-making, and coordination of activities. Therefore, the statement is true.

The Organizational Structure Defines Limits of Managerial Authority, Areas of Responsibility