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.