CMA Foundation · Fundamentals of Business Economics and Management · Organisation Structure, Responsibility, Accountability and Delegation of Authority
In a firm where every employee reports to one superior only and authority flows in a single straight line from the top manager down to the operatives, the organisation structure is best described as:
The structure is a line organisation. In it, authority passes in a direct vertical line from top management to operatives, and each employee reports to only one superior, giving clear unity of command, unlike matrix or committee forms.
- ALine organisationCorrect
- BMatrix organisation
- CCommittee organisation
- DProject organisation
Explanation
Line organisation has a single chain of command with each person answerable to one superior and authority flowing vertically. Matrix structures break this by giving employees two bosses, so they do not fit the description.
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