Understanding leadership requires a fundamental understanding of organizations and the design factors that must be considered. The design of an organization is the formal framework for communication and authority, and is determined by:

Question

Quizplus · Accepted Answer

The design of an organization is determined by formalization (the degree to which rules and procedures are standardized), centralization (the degree to which decision making is concentrated at higher levels of the organization), and complexity (the degree to which differentiation and specialization exist within the organization). Therefore, option A is the correct answer as it includes all three factors. Option B is incorrect as outsourcing is not a design factor. Option C is incorrect as it only includes two factors, while option D is incorrect as it only includes centralization and complexity.

Understanding Leadership Requires a Fundamental Understanding of Organizations and the Design