Question on: JAMB Commerce - 2013

A line structure is typically the most suitable organizational structure for small or medium-sized enterprises (SMEs). Here's why:

• Simplicity: Line structures are straightforward and easy to understand. This is beneficial for SMEs as it reduces the complexity of management.
• Clear lines of authority: It establishes a clear chain of command, which is crucial for quick decision-making and accountability, something that SMEs often need to be agile.
• Cost-effectiveness: Line structures are less expensive to implement and maintain than more complex structures.
• Direct Supervision: With fewer layers, managers can directly supervise employees, leading to better control and communication.

The other options are less suitable:

• Staff structure: This structure provides advisory roles but lacks direct authority.
• **Committee