What term describes the distribution of power and authority within an organization?

Prepare for your IB Business Management Exam with multiple choice questions and in-depth explanations. Get ready to excel and achieve your goals!

The term that describes the distribution of power and authority within an organization is organizational structure. This concept refers to the way in which an organization arranges its people and tasks to achieve its goals. It defines roles, responsibilities, and the hierarchy of command, allowing for clear delineation of power and authority.

Understanding organizational structure is essential, as it influences communication, decision-making processes, and operational efficiency. A well-defined structure helps clarify who reports to whom, how information flows, and the levels of authority within the organization. This can include various models such as functional, divisional, or flat structures, which can impact how effectively the organization can operate and adapt to changes in the business environment.

Other options, while related to elements of an organization, do not capture the specific aspect of power and authority distribution. Job specification relates to the specific qualifications and duties of a particular position, organizational culture refers to the shared values and practices within an organization, and span of control deals with the number of subordinates a manager supervises rather than the broader structure of authority itself.

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