Question

Which of the following explains how self-directed work teams should be designed?

a) Based on hierarchical structures
b) With centralized decision-making
c) With a clear chain of command
d) With decentralized decision-making

Answer 1

Self-directed work teams function best with decentralized decision-making, which encourages active participation and adapts more efficiently to changes in the modern, information-focused age.

Step-by-step explanation:

Self-directed work teams should be designed with decentralized decision-making. This approach allows team members to participate actively in making decisions related to their work. By contrast, hierarchical structures and centralized decision-making, with a clear chain of command, represent traditional organization models which might not be as efficient in the information age where rapid change and adaptability are crucial. Self-directed teams are a way to address coordination problems by balancing transaction cost and conformity cost, promoting efficiency, and harnessing the diverse skills of team members.