“Simple structure is a set of criteria for the adequacy of a rotated factor analytic solution where there are high loadings on some variables and zero loading on others.”
An organization in which the formal structure is in a basic or elementary situation, with little rules and regulations for governing how work will be done or authority will be exercised. Small businesses in their early phases of development sometimes follow this structure.
More precisely, an organizational structure with minimum departmentalization and a few numbers of levels is called a simple structure. Generally, decision-making authority is centralized on a single member. These structures have a low level of differentiation of subtasks, and the managers sometimes have wide spans of control. Mostly, the authority is heavily focused on only one person, who is often the company’s owner. Formalization is also low, and work is sometimes structured through direct supervision and control. This structure is also called a flat structure.
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