Which of the Following Statements Is True Regarding an Organization

question 87

Multiple Choice

Which of the following statements is true regarding an organization following a low-cost strategy?

• A) Low-cost organizations typically use complex organizational structures.
• B) Typically, low-cost organizations use centralized decision-making.
• C) The organizational structure used by a low-cost organization generally has higher integration than that used by a differentiator.
• D) An organic structure is more suitable for a low-cost organization than a mechanistic structure.

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Definitions:

Differential Piece Rate

A compensation system where an employee’s pay is based on the quantity of units produced, with different rates applied depending on the worker's productivity levels.

Standard Hour Plan

A compensation system where employees are paid a set rate for each unit of work completed within a standard timeframe.

Straight Piecework Plan

A pay system where employees are compensated based on the number of units they produce or tasks they complete, directly linking pay to output.

Performance-Vested

Incentive plans where rewards, often in the form of stock options or bonuses, are given to employees based on achieving predefined performance targets.