Organizational structure: specifies the firm\'s informal reporting relationships

Question

Organizational structure:

specifies the firm's informal reporting relationships, procedures, controls, and authority and decision-making processes.

specifies the firm's formal reporting relationships, grouping of individuals into departments, and chains of command.

specifies the firm's grievance procedures, manufacturing procedures, and limitations on decision-making processes.

specifies the firm's formal value proposition, the markets it will serve, and how the firm will provide value in those markets.

specifies the firm's informal reporting relationships, procedures, controls, and authority and decision-making processes.

specifies the firm's formal reporting relationships, grouping of individuals into departments, and chains of command.

specifies the firm's grievance procedures, manufacturing procedures, and limitations on decision-making processes.

specifies the firm's formal value proposition, the markets it will serve, and how the firm will provide value in those markets.

Explanation / Answer

The correct answer is option b.

Organizational structure refers to the structure that coordinates and motivates employees to work together in meeting organizational goal. It helps in deciding about the reporting relationship and the tasks performed by each. Organizational structure refers to different activities focused on meeting organization aims. The factors include internal and external environment that makes the organization effective through appropriate organization structure. The organization structure depends on factors like size of the company, diversity of operations and the environment in which the organization operates.

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