Multiple choice

Consider the following statements:

  1. Model synthesis of organization is based on the fact that all organizations must deal with uncertainty.
  2. Sources of uncertainty are external as well as internal.
  3. If the sources of organizational uncertainty are internal, then the organization will try to reduce uncertainty by decentralizing. Which of the statements given above are correct?

  1. Only 1 and 2

  2. Only 2 and 3

  3. Only 1 and 3

  4. 1,2 and 3
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Statements 1 and 2 are correct: the Model synthesis of organization indeed recognizes that all organizations face uncertainty (1), and sources of this uncertainty can be both external (market changes, competition) and internal (technology, employee behavior) (2). Statement 3 is incorrect because when uncertainty sources are internal, organizations try to control them through centralization to gain better oversight, not decentralization.

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