Question

Organizational structure is made up of key elements. Which of the following is NOT one of these elements?
1. Span of control
2. Centralization
3. Decentralization
4. Co-ordination

Answer 1

Correct Answer - Option 4 : Co-ordination

The correct answer is Co-ordination.

• A strategic, carefully planned organizational structure helps a business run effectively and efficiently.
• Organizational structure’s six elements are the 6 building blocks that managers must use in developing and structuring organizational hierarchy.
• The six basic elements of organizational structure are:
  • departmentalization
  • chain of command
  • span of control
  • centralization or decentralization
  • work specialization
  • degree of formalization
• Departmentalization refers to how the organizational structure groups the company's functions, offices and teams.
• Most organizations, from businesses to nonprofits to the military, utilize a chain of command. This helps eliminate inefficiencies by having each employee report to a single manager, instead of to several bosses.
• An organization’s span of control defines how many employees each manager is responsible for within the company. There is no single type of span of control that’s ideal for all companies or even for all businesses in a specific industry.
• Organizational structures also rest somewhere on a spectrum of centralization. Generally, more conservative corporate entities adopt a centralized structure. A decentralized system allows all levels of management the opportunity to give input on big-vision goals and objectives.
• In any business, employees at all levels typically are given a description of their duties and the expectations that come with their positions. In larger companies, job descriptions are generally formally adopted in writing.
• Formalization is the element that determines the company’s procedures, rules and guidelines as adopted by management.