A Decision to Opt for Vertical Integration or External Sourcing

question 50

Multiple Choice

A decision to opt for vertical integration or external sourcing:

• A)Can easily be reversed, so should not take up too much managerial time
• B)Can be made easier by simply opting for both
• C)Should be considered rationally by senior managers, both from a long-term financial and a strategic perspective
• D)Should be trusted to external consultants who understand the theory better

---

Definitions:

Automation

The use of technology to perform tasks without human intervention, often improving efficiency, reliability, and speed in processes.

Sociotechnical Systems

A conceptual approach emphasizing the interrelatedness of social and technical aspects of an organization to optimize performance and employee satisfaction.

Techno-human Systems

Integrated systems that include both technological components and human elements, focusing on their interaction to enhance overall performance.

Job Designs

The process of organizing tasks, duties, and responsibilities into a productive unit of work to enhance efficiency and employee satisfaction.