Question

Hank's Hot Dogs is a nationwide fast-food chain. Decision power resides at the top of the organization. Each job is documented in minute detail. The firm has many levels of supervision, including vice presidents and regional managers. Hank's headquarters provides detailed instructions to each of its franchisees so that they provide comparable quality and service across the board. Based on this scenario, which of the following is an accurate statement about Hank's?

A. Hank's has a low degree of specialization and formalization, a high degree of centralization, and relies on a flat hierarchy.
B. Hank's has a high degree of specialization and formalization, a low degree of centralization, and relies on a tall hierarchy.
C.Hank's has a high degree of specialization, formalization, and centralization andrelies on a tall hierarchy.
D. Hank's has a low degree of specialization, formalization, and centralization and relies on a flat hierarchy

Answer 1

C). Hank's has a high degree of specialization, formalization, and centralization and relies on a tall hierarchy.

Step-by-step explanation:

As per the given description, option c displays the most accurate statement regarding Hank's as 'the firm possesses a higher degree of specialization' which is reflected through the dealing of the firm into the production and trade of a specified group of goods in order to achieve a greater level of efficiency. The 'formalization' is mirrored through the documented and 'detailed description' of the processes as well as responsibilities in 'minute details' while 'tall hierarchy' is reflected through the division of management of organization in different layers('many levels of supervision, including vice presidents and regional managers'). Therefore, option C is the correct answer.