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Which of the following statements is true regarding organization structure?

A. Span of management gives shape to the organization structure.

B. Organization structure of a firm can not be shown in an organization chart.

C. It does not allow coordination among human, financial and physical resources.

D. It provides a framework within which managerial and operating tasks are performed.

E. It specifies the relationship between people, work and resources.

Choose the correct answer from the options given below:

Solution

Correct Option: 1

Span of management determines the shape (tall or flat) of the structure — A is true. The structure is shown on an organization chart — B is false. It coordinates resources — C is false. It provides a framework for tasks — D is true. It specifies relationships between people, work, and resources — E is true. Hence A, D, E only are correct.

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