Which statement best describes a simple structure?

• A. Centralization of decision making with formalized processes
• B. Strategic apex is dominant; no formal structure; Direct Supervision
• C. Extensive standardization of work processes
• D. Highly professional staff driving operations

Answer: (B)

A simple structure is defined by centralized leadership, a flat hierarchy, and little formalization. Here, the strategic apex holds the decision-making power and there are few if any formal rules or processes guiding day-to-day work, with supervision flowing directly from top management to the operating level. This setup suits small, founder-led or family businesses where roles are loosely defined and communication is informal.

The idea behind the statement is that decisions are concentrated at the top, and there isn’t a formal structure or extensive supervision layers. That direct, top-down approach is what characterizes a simple structure. The other descriptions describe more formalized or specialized organizational forms, with more rules, layers, or professionalization driving operations.