Three important views of classical management school are those of F. Taylor, H. Fayol, and M. Weber. The ideas of these three important organization theorists make up the foundation of today’s organization theories. Following are the still used approaches of these authors. As the first author of these three, F. Taylor is the founder of scientific management. In scientific management, the aim is to produce more through increasing efficiency. The correct answer is choice C.

Imagine a chain of hospitals, which has several health care facilities, located in different cities of a country. Which sectors should be considered primarily when analyzing the external environment? State can be viewed as an important actor that provides and regulates health care services in most of the countries. Therefore, a health care organization has to monitor government sector and establish good relations with the authorities

Similar to the BSC, the competing value approach tries to balance concerns from various parts of an organization. This approach is represented by three underlining value dimensions: organizational focus, organization structure, and organizational means

Although four of the options served as pioneers of Contingency Theory, Henri Fayol was among the first to systematically study the organizations. So, Fayol’s ideas and works may have paved the way for Contingency Theory, yet he, himself, was not among relevant theorists. Thus, the correct answer is D

The business group achieves financial synergy, and the headquarter does not need to make coordination between business units; it has to cope only with the bureaucratic costs that arise from the number of businesses in its portfolio. The diversification discount is the main disadvantage of the business group if it operates in a developed country.

A matrix form enables implementing both divisional and functional forms, simultaneously. Therefore, the correct option is C.

In Thompson’s model, Institutional level should be open because its task is to relate organization with its broader context. However, technical level should be closed and organized rationally. Managerial level should act as a mediator between the other two levels according to Thompson

According to bureaucratic theory, if expanding and growing organizations do not desire to turn out to be inadequate, they must adhere to the ideal bureaucracy structure. The aspects of ideal bureaucracy theory can be summarized as the following six items: A well-defined hierarchy of authority, clear division of work, a system of rules covering the rights and duties of all employees, a system of procedures for dealing with the work situation, impersonality of interpersonal relationships, selection and promotion based on technical competence. The success of an organization depends on the strict compliance with rules. Arbitrary behaviors and procedures must be routinized and managed. Management principles and approaches to the bureaucratic theory are those aiming at composing the formal structure of organizations. As also understood from the information given, the correct answer is “E”. “A well-defined hierarchy of authority”, “Clear division of work”, “”A system of rules covering the rights and duties of all employees”, “Impersonality of interpersonal relationships” and “Selection and promotion based on technical competence” are among  the aspects of ideal bureaucracy. “A system of procedures for dealing with the work situation” is the sixth aspect of ideal bureaucracy theory.

Scholars who were mostly interested in the efficient processing of internal systems did not have motivation to think about external factors surrounding organizations because the main problem at the dawn of 20^th century was to find a way to organize business in the workplace. They imagined a machine like closed structure operating with maximum efficiency. Employees working in the first modern organizations were viewed as replaceable parts of this perfect model. They ignored the human side of organizations, and they preferred to focus on defining an economic man. Choice (e) is the correct answer.

The metaphor ‘Organizations as Flux and Transformation’ indicates that organizations are complex, non-linear, self-organizing systems characterized by contradiction. Chaos and complexity theory explains this perspective. The correct answer is B.

Departmentalization is the basis for grouping positions into departments and departments into the whole organization.

There are various strategies to manage dependency relations with the actors in the external environment:

• Acquisition of suppliers.
• Developing long term contracts with the
  critical suppliers
• Interlocking directorates – to assign some members of board of directors to the supplier firms’ boards.
• Founding joint ventures with the critical firms in terms of resource flow.
• Joining trade associations.
• Lobbying.

Upgrading processes is not one of the strategies.

It is possible to state that principles of classical management are most fit with the organizations operating in a stable environment since achieving maximum efficiency is a prerequisite to survive.

A firm engages in unrelated diversification when it enters into a new business that has no relationship with its core business.

Transnational strategy combines characteristics of both multidomestic and global strategies along with its own unique features by trying to achieve both local responsiveness and efficiency at the global level.

To effectively implement a cost-leadership strategy, managers must create a U-form that contains the organizational elements of a mechanistic structure since all drivers of cost leadership strategy requires increased efficiency thus a high degree of centralization, formalization, specialization, and bureaucratic control

A configuration implies a multidimensional combination of work contingencies, design and performance elements that commonly occur together. However, rather than trying to explain how an organization is designed from its constituent elements, one-element-at-atime, a configuration perspective tends to focus on how a work system is designed from the interaction of its constituent elements taken together as a whole.

Control is a process through which management can initiate and regulate activities such that their results fit in with the goals and expectations held by management.

Under low uncertainty condition, when the environment is stable, the structure of the organisation should be formal and centralised. Thus, the correct answer is A.

Classical Management School

Three important views representing Classical Management School period are those of F. Taylor, H. Fayol, and M. Weber. The ideas of these three important organization theorists make up the foundation of today’s organization theories. Following are the still used approaches of these authors. As the first author of these three, F. Taylor is the founder of scientific management. In scientific management, the aim is to produce more through increasing efficiency. As a way to realize this aim, arrangements in the business level make up the main field of activity. The most focused aspect of these studies is business management and organization. In terms of scientific management, etudes of motion and time are given importance to have productivity. Motion etude is used for determining which motions will make the job. The goal is to get the highest result with minimum labor. Time etude is used for determining the standard time of a job. Thus, necessary performance measures can be conducted. In short, this approach is a management theory that tries to explain how to utilize human resource effectively in routine jobs. As also understood from the information given, the correct answer is “A”. Behavioral School following the classical period are known as the micro-organization theory. The contingency theory is the second important approach in modern organization theories and brings a new dimension to the relations of organizations with their environment. The contingency theory that regards the organization as a system argues that only one ever-successful management and organization style is not possible. According to bureaucratic theory, if expanding and growing organizations do not desire to turn out to be inadequate, they must adhere to the ideal bureaucracy structure. The aspects of ideal bureaucracy theory can be summarized as the following six items: A well-defined hierarchy of authority, clear division of work, a system of rules covering the rights and duties of all employees. System approach approach is the one that decides various communication and interaction areas between different units of modern organization and their environment and shows which way to go. The system is an integral structure whose parts communicate and interact with each other.