Financial ManagementQuestion 5512 of 217
All Questions

15. The role played by middle management is diminishing as the tasks performed by them are increasingly being replaced by new and improved technological tools. As a result, in a three layer organizational structure, middle level is constricted. Which one of the following is a suitable name to such structure?

Options

AHourglass structure
BNetwork Structure
CMatrix structure
DDivisional structure
For any discrepancies in this question, email contact@cadada.in

Correct Answer

Option AHourglass structure

All Options:

  • AHourglass structure
  • BNetwork Structure
  • CMatrix structure
  • DDivisional structure

Ad

Detailed Solution & Explanation

Correct Answer: Option **A** Explanation: An **Hourglass Structure** is an organizational structure that has a wide base (lower level of technical and operational specialists) and a wide top (senior/strategic management), but a narrow or constricted middle management layer.
* This constriction occurs because advanced technological tools, information systems, and automation increasingly perform tasks traditionally handled by middle managers (such as data collection, reporting, and routing communications). * Consequently, the role of middle management diminishes, leading to a shrunken middle level in a three-layer organizational structure.
Hence, **Option A** is the correct answer.

More Questions from Financial Management

Ready to Master Financial Management?

Practice all 217 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free