She tries to design an organizational structure that allows communication to flow in all directions and involves workers in decision-making. Which form of organizational structure is this?
A. Centralized
B. Decentralized
C. Matrix
D. Informal
Correct Answer: B. Decentralized
Decentralized structures allow the staff to make decisions on matters pertaining to their practice and communicate in downward, upward, lateral and diagonal flow. Decentralization is a type of organizational structure in which daily operations and decision-making responsibilities are delegated by top management to middle and lower-level managers.
Option A: Centralized management is the organizational structure where a small handful of individuals make most of the decisions in a company. More centralized management is usually seen in highly competitive industries, where companies specialize in similar products to their competition.
Option C: A matrix organizational structure is a workplace format in which employees report to two or more managers rather than one manager overseeing every aspect of a project. For example, an employee may have a primary manager they report to as well as one or more project managers they work under.
Option D: The informal organization is the interlocking social structure that governs how people work together in practice. It is the aggregate of behaviors, interactions, norms, and personal/professional connections through which work gets done and relationships are built among people.