A Company Is Run by One Senior Executive and Three

question 21

Multiple Choice

A company is run by one senior executive and three junior executives. Suppose that these four
executives vote on all decisions made. In order for a decision to pass the senior executive and two
junior executives must vote in favor of it. What is the Shapely-Shubik Power of the senior executive?

• A) 40%
• B) 50%
• C) 60%
• D) 70%
• E) None of the above.

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Definitions:

Divisionalized Form

This organizational structure divides an entity into semi-autonomous units or divisions, each responsible for their own operations, products, or services.

Machine Bureaucracy

A type of organizational structure characterized by a high degree of standardization and formalization, clear hierarchical levels of authority, and a focus on rules and regulations for management and control.

Span of Control

The number of subordinates directly supervised by a manager, indicating the breadth of management's control.

Hierarchy of Authority

A structured order of positions within an organization, where each level has specific powers and responsibilities over the levels below.