Which of the following statements about simple organizational structures is false?
A) Small firms with a narrow product-market scope will adopt such a structure.
B) Decision-making authority is highly centralized.
C) There is little specialization of tasks.
D) Creativity and individualism are rare.

Question

Quizplus · Accepted Answer

The simple organizational structure is the oldest, and most common, organizational form. Most organizations are very small and have a single or very narrow product line in which the owner-manager (or top executive) makes most of the decisions. Decision making is highly centralized. There is little specialization of tasks. There are few rules and regulations. There exists an informal evaluation and reward system. A simple structure may foster creativity and individualism, since there are generally few rules and regulations.

Which of the Following Statements About Simple Organizational Structures Is