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

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

• A. Matrix Structure
• B. Functional Structure
• C. Simple Structure
• D. Decentralized Structure

Answer: (C)

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.

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.