Final answer:
The false statement is that management's attitudes toward internal control and ethical behavior have minimal impact on employee beliefs or actions, as these attitudes are instrumental in shaping the organizational culture and employee behavior.
Option 'b' is the correct.
Step-by-step explanation:
The question relates to the internal environment of an organization, which encompasses management attitudes, supervision, organizational structure, and official policy documents. The false statement among the options provided is that management's attitudes toward internal control and ethical behavior have only minimal impact on employee beliefs or actions.
In reality, management attitudes have a profound effect on the ethos of an organization, influencing how employees perceive their roles and the ethical landscape within which they operate.
Supervision is indeed crucial in smaller organizations or those that do not have extensive reporting systems or are unable to segregate duties adequately. An overly complex or unclear organizational structure can indeed lead to serious issues as it may inhibit clear communication and efficient operations.
Moreover, a written policy and procedures manual is an important tool for assigning authority and responsibility, providing a framework within which employees can understand their roles and the expectations placed upon them.
Transforming internal environments often align with the principles found in Theory Y management, whereby employees are viewed as inherently motivated, and management is encouraged to collaborate with employees for problem-solving and efficiency enhancements. Bureaucratic structures characterized by impersonality can serve large volumes of customers efficiently but frequently are criticised for a lack of concern for individual needs. However, there is a trend towards flatter organizational structures, with increasing recognition of the benefits of equal partnerships between employees and management.