Which statement is TRUE about organizational theory?

The statement that the organization should be as complex as its business requires is true because organizations need to align their structure with the demands of their specific operational environment and business goals. Complexity in an organization often arises from the need to manage various processes, roles, and interdependencies that arise as the organization scales or diversifies its operations.

For instance, a company operating in a highly dynamic market with diverse products might require a more complex structure to effectively manage its various functions and respond to rapid changes. Conversely, a small organization with a simple product line may benefit from a less complex, more streamlined structure. Therefore, it is essential for organizations to find the right level of complexity that effectively supports their strategy, facilitates communication, and enhances decision-making in relation to their unique circumstances.