Which type of organizational structure has all control concentrated at the top?

Prepare for the ACCA F1 Certification Exam with detailed quizzes featuring multiple choice questions and explanations. Enhance your understanding and ensure success in your exam!

The simple structure is characterized by a high degree of centralization with all control concentrated at the top of the organization. In this model, decision-making authority resides predominantly with the owner or top management, resulting in fewer levels of management and a streamlined decision-making process. This type of structure is often found in small businesses or startups, where the owner typically oversees all operations and makes all critical decisions.

In contrast, a matrix structure combines functional and project-based elements, which leads to distributed control among various departments and projects. A functional structure organizes employees based on specialized functions, but it does not concentrate control as heavily at the top as the simple structure does. A decentralized structure allows decision-making to be distributed throughout various levels of the organization, empowering lower-level management and staff, which directly opposes the notion of centralized control found in a simple structure.

Subscribe

Get the latest from Examzify

You can unsubscribe at any time. Read our privacy policy