Formalization in Organizational Structures Tends To

question 153

Multiple Choice

Formalization in organizational structures tends to:

• A)reduce organizational flexibility.
• B)undermine organizational learning and creativity.
• C)make rules and procedures the focus of attention rather than serving stakeholders.
• 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.

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Definitions:

Consumer Surplus

The benefit consumers receive when they pay less for a product than what they were prepared to pay, measured by the area beneath the demand curve and above the price.

Monopolist

An entity, often a single firm, that holds exclusive control over the supply of a particular good or service, setting prices without competition.

Marginal Cost

The increase in cost that arises from producing one additional unit of a good or service.

Competitive Industry

An industry in which numerous producers supply a homogeneous product or service, leading to competition over price and quality.