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Name 2 variables that indicate what kind of organisational structure a business has.

Question

Name 2 variables that indicate what kind of organisational structure a business has.

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Solution

  1. Hierarchy Level: This refers to the number of levels of management and supervision present in the organization. A flat structure has fewer levels, while a tall structure has many levels. This variable can indicate whether the organization has a more traditional, hierarchical structure or a more modern, flat structure.

  2. Centralization vs. Decentralization: This refers to the degree to which decision-making authority is concentrated at the top levels of the organization or distributed throughout. A highly centralized organization has a top-down structure where decisions are made by a few top executives, while a decentralized organization allows employees at various levels to make decisions. This variable can indicate whether the organization has a more autocratic or democratic structure.

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