Final answer:
The process used by managers to set up a structure of working relations aimed at reaching organizational goals is Option E organizing. This process can range from traditional, top-down hierarchies to more modern, flat structures that emphasize team-based approaches and transformational leadership.
Step-by-step explanation:
The process that managers use to design a structure of working relationships that allows them to work together to achieve organizational goals is called organizing. This involves arranging tasks, people, and other resources in a way that supports the accomplishment of business objectives. As organizational structures evolve, many companies are moving away from traditional hierarchies and towards more team-based approaches. Managers may solicit feedback from employees at all levels and aim to foster a collaborative environment. This aligns with the concept of Theory Y, which suggests that employees are innately motivated and thrive when given more autonomy and responsibility, as opposed to Theory X that views workers as inherently lazy and in need of close supervision.
Regarding leadership style, an authoritarian leader will have a top-down communication pattern and is more likely to align with Theory X management principles. On the other hand, transformational leaders encourage creativity and motivation, often seen in more modern, flat organizational structures. This transformative approach helps to support telecommuting arrangements and work-family balance, which are increasingly important in today's dynamic and rapidly changing workplace.