Question : Which of the following is a characteristic of a network organizational structure?
Option 1: Centralized decision-making
Option 2: Hierarchical authority
Option 3: Virtual teams
Option 4: Functional departments
Correct Answer: Virtual teams
Solution : The correct answer is (c) Virtual teams
A network organizational structure is characterized by the formation of virtual teams or cross-functional teams that collaborate and work together on specific projects or initiatives. Virtual teams are composed of individuals from different departments, functions, or locations who come together temporarily to accomplish a specific goal or objective. In a network structure, the focus is on leveraging expertise and resources from various parts of the organization to create agile and flexible teams. These teams are not bound by the traditional hierarchical authority or functional departments but operate based on the project's needs and objectives. Virtual teams promote collaboration, innovation, and knowledge sharing across the organization.
