Size of the organization, diversity of operations, and characteristics of the personnel are ________ factors that must be considered in the structure of the organization.

• A. external
• B. internal
• C. cultural
• D. strategic

Answer: (B)

Internal factors that shape organizational structure are those coming from within the organization itself. Size, the diversity of operations, and the characteristics of personnel all reside inside the organization and directly influence how work is organized, how many layers of supervision are needed, and how tasks are grouped. External factors, on the other hand, come from the outside world—things like market conditions, competition, regulations, and technological shifts—not from the organization’s own makeup. While strategic considerations can steer structure, the items listed clearly reflect internal attributes, so they are categorized as internal factors.