A company hires outside firms to perform logistics, payroll and information technology while coordinating the work through a small central office. This structure is best described as a:
Correct answer: A. Network structure
- A. Network structure
- B. Functional structure
- C. Line structure
- D. Machine bureaucracy
Explanation
A network structure relies on external organisations for important activities and coordinates them through a central organisation. A functional structure performs its main specialist activities within internal departments.
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About Organisational Structure and Management
Organisational structure explains how authority, responsibility, communication and tasks are arranged through functional, divisional, matrix and flat designs. Management covers planning, organising, staffing, directing and controlling, alongside delegation, span of control, centralisation, decentralisation and coordination.
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