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What is the point of contemporary and team-based structures?
AThey cut the total wage bill of the organization
BThey allow every employee to set individual targets
CThey remove the need for any managerial authority
DThey assemble employees to respond quickly to change
Answer & Solution
Correct answer: D. They assemble employees to respond quickly to change
1. Contemporary and team-based frameworks are described as the flexible alternative to rigid traditional grouping.
2. Their purpose is to assemble employees so the firm can respond quickly to dynamic business environments.
3. Nothing ties them to a lower wage bill, and authority still has to be assigned in any structure.
4. Individual target setting is a performance practice, not a reason to change the structure.
_Source: OpenStax Introduction to Business (CC BY 4.0), Ch 7 "Designing Organizational Structures", section 7.1 Building Organizational Structures_
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