Formalization in Organizational Structures Tends to

question 173

Multiple Choice

Formalization in organizational structures tends to

• A)reduce organizational flexibility.
• B)make rules and procedures the focus of attention rather than serving stakeholders.
• C)undermine organizational learning and creativity.
• D)have all of these outcomes.
• E)reduce organizational flexibility and make some employees feel alienated and powerless, but doesn't usually make rules and procedures the focus of attention.

---

Definitions:

Discounting

The process of determining the present value of future cash flows by applying a discount rate.

Compounding

The process in which the value of an investment increases because the earnings on an investment, both capital, and interest, earn interest as time passes.

Simple Interest

Interest calculated only on the principal amount of a loan or deposit, without compounding.

Note Payable

A formal written agreement to pay a specified amount of money, including interest, by a certain date, recorded as a liability on the balance sheet.