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:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → A, D, E only
(A) Span of management gives shape to the organization structure. — True. Span of management is the number of subordinates a superior can manage well. It gives shape to the organisational structure because it decides the levels of management.
(B) Organization structure of a firm can not be shown in an organization chart. — False. The structure of a firm is shown in an organisation chart.
(C) It does not allow coordination among human, financial and physical resources. — False. A structure allows correlation and coordination among human, physical and financial resources.
(D) It provides a framework within which managerial and operating tasks are performed. — True. Organisation structure is the framework within which managerial and operating tasks are performed.
(E) It specifies the relationship between people, work and resources. — True. It specifies the relationships between people, work and resources.
NCERT (2026-27 Edition): “Organisation Structure … Span of management refers to the number of subordinates that can be effectively managed by a superior. This determines the levels of management in the structure.” “The organisation structure can be defined as the framework within which managerial and operating tasks are performed. It specifies the relationships between people, work and resources. It allows correlation and coordination among human, physical and financial resources and this enables a business enterprise to accomplish desired goals. The organisation structure of a firm is shown in an organisation chart.” |