Which organizational structure is known for its direct flow of authority from the chief executive to the employees?

Study for the UofT MGT100 Fundamentals of Management Exam. Practice with quizzes and detailed study materials to excel. Prepare with clear explanations and valuable tips to ace your exam!

The organizational structure recognized for its direct flow of authority from the chief executive to the employees is referred to as line organizations. In this structure, there is a clear chain of command where authority is centralized at the top and flows directly down to the lowest level of the organization. Each employee has a direct supervisor, simplifying communication and decision-making processes. This clarity in authority helps to ensure that directives can be given and followed without the confusion that might arise from intermediary layers.

In contrast, other organizational structures like matrix organizations introduce multiple reporting lines, complicating authority flows due to the combination of functional and project management structures. Committee organizations often involve decision-making by a group rather than centralized leadership, leading to diluted authority. Line-and-staff organizations integrate line authority with staff functions that provide specialized support, but this adds layers of complexity to the flow of authority. Therefore, the straightforward communication and authority structure inherent in line organizations makes it optimal for ensuring that directives from the chief executive are promptly executed by employees.

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