Contingency Factors in Delegation

question 149

Multiple Choice

Contingency Factors in Delegation
Elaine knew that in order to be an effective manager she needed to delegate, yet it was extremely difficult for her. She was new to the organization and was unsure exactly what the delegation process was and how it was to be used. There were seven layers in the organizational hierarchy, and she had 15 managers reporting to her. She knew delegation had to occur. Looking in the company handbook, she noticed that for all decisions over $140,000, she needed her supervisor's approval. For everything over $250,000, vice- presidential approval was needed. Many of the tasks her managers were working on were very technical. Elaine was not sure if she had the expertise to make some decisions. However, she had a very competent group of people working for her. Their skill level, education, experience, and motivation were superior. The final question in her mind was to determine what was acceptable in the organization. Management seemed to trust the employees and place confidence in their decision- making. It was a point Elaine still needed to check out.
-The point that Elaine is pondering concerning the organization falls under which contingency factor?

• A)the importance of the duty or decision
• B)the size of the organization
• C)organizational culture
• D)task complexity

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Definitions:

Variable Costing

A costing method that includes only variable manufacturing costs - direct materials, direct labor, and variable manufacturing overhead - in the cost of a product.

Unit Product Cost

The total cost associated with producing one unit of a product, including direct materials, direct labor, and allocated overhead.

Net Operating Income

A business's income after deducting operating costs, not including taxes or interest.

Break-even Points

The level of sales at which total revenues equal total costs, resulting in no profit or loss.