Formalization refers to the number of written documents comprising procedures, job descriptions, regulations, instructions and guidelines. Centralization refers to the direction –top or lower level- of decisions in organizational hierarchy. Specialization refers to the degree to which organizational tasks or work processes are subdivided into separate jobs. Henri Fayol was a French industrialist who examined administrative aspects of organizations in his book titled “General and Industrial Management” published in 1916. Fayol defined the important general principles of management, which are still used in various types of modern organizations. Departmentalization was one of his principles. He suggested that similar or related activities should be grouped in the same administrative units to achieve high level of coordination among employees working on relevant tasks. Thus, employees working physically close to each other can easily communicate and collaborate with the others in their departments. Hierarchy of authority refers to the number of managerial levels in an organization, and it is closely related to span of control – the number of employees reporting to a supervisor. The correct answer is Choice C.