Which of the following statements most closely identifies the problem with adopting Fayol's principles of organization design for contemporary businesses?
A) Leaving some decision-making power to middle management has the effect of minimizing the effort and results that management would put into the other historical principles of organization.
B) The rule making that develops from these principles creates organizations that don't respond quickly to customer needs.
C) The principles of Fayol and Weber hamper a firm's ability to determine if it is profitable.
D) Authority and responsibility quickly become unrelated.

Question

Quizplus · Accepted Answer

Fayol's principles of organization design emphasize a bureaucratic structure with strict rules and standardized procedures. While this may have worked well in the past, contemporary businesses need to be agile and responsive to changing customer needs. Too much rule making can create an organization that is slow to adapt and unable to satisfy customers in a fast-paced environment. Therefore, the adoption of these principles might not be suitable for contemporary businesses.

Which of the Following Statements Most Closely Identifies the Problem