Which organizational structure would be most appropriate for a small start-up company?

Which organizational structure would be most appropriate for a small start-up company?
A . Centralized structure
B . Decentralized structure
C . Matrix structure
D . Flat structure

View Answer

Answer: D

Explanation:

a flat structure is the most appropriate organizational structure for a small start-up company. A flat structure is defined as "a type of organizational structure that has few or no levels of middle management between the employees and the executives"1. A flat structure allows for more direct communication, collaboration, and decision-making among the employees and the leaders, which can enhance innovation, agility, and responsiveness in a start-up environment12. A flat structure also reduces bureaucracy, hierarchy, and overhead costs, and empowers the employees to take more ownership and initiative in their work12. A flat structure is suitable for a small start-up company that has a simple and flexible business model, a lean and cross-functional team, and a customer-centric and value-driven culture12.