Explain how the different types of organizational structures in Burns and Stalker's contingency theory rest on Theory X or Theory Y assumptions.

What will be an ideal response?


The types of structures that Burns and Stalker proposed are mechanistic structure and organic structure. In a mechanistic structure, authority is centralized at the top of the managerial hierarchy, and the vertical hierarchy of authority is the main means used to control subordinates' behavior. Tasks and roles are clearly specified, subordinates are closely supervised, and the emphasis is on strict discipline and order. Everyone knows his or her place, and there is a place for everyone. A mechanistic structure provides the most efficient way to operate in a stable environment because it allows managers to obtain inputs at the lowest cost, giving an organization the most control over its conversion processes and enabling the most efficient production of goods and services with the smallest expenditure of resources. A typical mechanistic structure typically rests on Theory X assumptions. In an organic structure, authority is decentralized to middle and first-line managers to encourage them to take responsibility and act quickly to pursue scarce resources. Departments are encouraged to take a cross-departmental or functional perspective, and cross-functional teams composed of people from different departments are formed. A typical organic structure typically rests on Theory Y assumptions.

Business

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a. True b. False Indicate whether the statement is true or false

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2. An independent review and examination of system records and activities in order to test for adequacy of system controls, to ensure compliance with established policy and operational procedures,

to detect breaches in security, and to recommend any indicated changes in control, policy and procedures is a(n) __________ . What will be an ideal response?

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a. 21.064. b. 23.685. c. 7.790. d. 6.571.

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Jane is having difficulty deciding whether to put her savings in the Mystic Bank or in the Four Rivers Bank. Mystic offers a 12% rate compounded quarterly, and Four Rivers offers 14% compounded semiannually. Jane has $40,000 to invest and expects to withdraw the money at the end of five years. The better deal is:

A. Four Rivers because she will earn about $4,000 more. B. Four Rivers because she will earn about $6,442 more. C. Four Rivers because she will earn about $20,000 more. D. Four Rivers because she will earn about $6,523 more.

Business