John Works for an Organization That Has Few Formal Rules

question 11

Multiple Choice

John works for an organization that has few formal rules and regulations to provide guidance to its employees. At times, he feels as if he is simply guessing his way through his job because clear guidelines are not available. John is even more frustrated because no one knows who to report problems to because there does not seem to be any formal hierarchy of authority in place. John is most likely working for an organization with what type of management structure?

• A) Organic
• B) Interlocking directorate
• C) Indirect interlock
• D) Mechanistic
• E) Differentiation

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Definitions:

Legal Cartel Theory

A concept where regulations permit or create conditions for the existence of cartels, which are agreements between competing firms to control prices or markets.

Public Interest Theory

Suggests that regulations are supplied in response to the demand of the public for the correction of inefficient or inequitable market practices.

Price-fixing Theory

The economic analysis concerning agreements between competitors to sell a product or service at a set price, limiting competition.

Public Ownership

Ownership of assets, enterprises, or resources by governmental organizations rather than individuals or private companies.