Question : The hierarchical arrangement of authority, responsibility, and accountability within an organization is known as:
Option 1: Organizational structure
Option 2: Centralization
Option 3: Decentralization
Option 4: Departmentalization
Correct Answer: Organizational structure
Solution : The correct answer is (a) Organizational structure
Organizational structure refers to the way an organization is designed and organized, including how authority is distributed, roles and responsibilities are defined, and how communication and decision-making flow within the organization. It encompasses the hierarchical relationships, reporting lines, and coordination mechanisms that determine how work is organized and managed.
An organizational structure defines the formal relationships and interactions among various individuals, departments, and units within an organization. It outlines the levels of management, the division of work, the reporting relationships, and the overall framework for organizing and managing activities.