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Question

The production of the new iPhone is split up into many different parts: design, hardware, software, manufacture, marketing, production, and assembly. This way, the company can hire specialised people for each task. Tim Cook is the overall authority over the employees. He is responsible for ensuring that his employees are motivated towards achieving the organisational goal. A hierarchical structure developed by Steve Jobs was modified by Tim Cook so that there is a systematic chain from top to bottom levels of workers at Apple. This hierarchy allows communication even across the departments in the company. There is just one person managing the entire organisation. The company has special recognition for employees, such as the Apple Genius, which offers $45,000/year. Also, they are provided with health benefits, financial and retirement benefits, family and parenting benefits, etc.

The concentration of authority in the company lies with just one person. What is the organisational structure seen in this company?

[0.80 marks]

A
Centralised
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B
Decentralised
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C
Informal
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D
Divisional
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Solution

The correct option is A Centralised
The organisational structure is centralised. Here, the entire authority of command is on one person for decision-making.

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