Question

As a firm grows, its organizational structure will often become more complex.   True or False

Answer 1

The correct answer is true.

Organizational structure refers to the structure that coordinates and motivates employees to work together in meeting organizational goal. It helps in deciding about the reporting relationship and the tasks performed by each. Organization structure can be centralized or decentralized. As the firm grows the functional structure becomes more complex, hence the organization prefers to outsource some of the business processes to the third party.