The organization structure that is best for small companies is:
A) Divisional
B) Hollow
C) Matrix
D) Functional
E) Horizontal

Question

Quizplus · Accepted Answer

Functional structure is the best choice for small companies because it groups employees based on their specialties and skills, allowing for efficient utilization of resources and clear lines of communication. With a functional structure, each employee reports to a single manager who is responsible for a specific function or department, such as finance, marketing, or operations. This allows for clear accountability and streamlined decision-making. In contrast, other structures like divisional or matrix may be too complex and cumbersome for small companies with limited resources.

The Organization Structure That Is Best for Small Companies Is