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Besides well-defined lines of authority, what else does a formal organization have?
AEqual pay scales and identical job titles for all
BChannels for information flow and means of control
CPermanent teams that are never changed or disbanded
DA single manager who approves every daily decision
Answer & Solution
Correct answer: B. Channels for information flow and means of control
1. A formal organization sets out who has authority over whom.
2. It also fixes the channels along which information flows and the means of control.
3. Equal pay and identical titles are not structural features at all.
4. Permanence is ruled out because some connections, such as a committee formed to study a problem, can be changed at almost any time.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 7 "Designing Organizational Structures", section 7.1 Building Organizational Structures_
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