John just became CEO of a large company that manufactures the same basic type of product as other companies in this industry. As a result, the organization's priorities are efficiency and control-because profit margins are very low in the industry. Which of the following aspects of organizational design would best fit John's company?
A) decentralized and flat
B) centralized with matrix structure
C) centralized with line structure
D) decentralized with matrix structure

Question

Quizplus · Accepted Answer

A centralized with line structure is best suited for an organization where efficiency and control are top priorities, especially when profit margins are low. This structure allows for clear lines of authority and decision-making, ensuring that tasks are completed quickly and efficiently. It also helps to eliminate redundant work and minimize costs. Decentralized structures would not be suitable in this scenario as it would lead to a lack of control, while a matrix structure would add complexity to the decision-making process, leading to reduced efficiency.

John Just Became CEO of a Large Company That Manufactures