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Bill Once Had a Blue Car That Was in the Shop

question 34

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Bill once had a blue car that was in the shop more than it was out. Since then he will not even consider owning blue- or green-colored cars. Bill's aversion to green cars is an example of


Definitions:

Decentralization

The degree to which the authority to make decisions is given to lower levels in an organization’s hierarchy.

Hierarchy of Authority

A system in organizations where individuals are ranked according to their roles and responsibilities, establishing a clear line of command from top to bottom.

Formal Structure

The officially designated arrangement of roles and responsibilities within an organization, typically outlined in organizational charts and documents.

Unity of Command

A principle stating that each employee should report to one and only one manager to avoid confusion and conflict.

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