Kirkland's theory of corporate structure can be represented

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BTGmoderatorDC: Moderator; Posts: 7187; Joined: Thu Sep 07, 2017 4:43 pmFollowed by: 23 members

by BTGmoderatorDC » Thu May 10, 2018 10:04 pm

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Kirkland's theory of corporate structure can be represented by a truncated pyramid. There are workers, middle management, and executive management, but no head of the corporation. Instead, all major decisions are made by comittee. As a consequence, in Kirkland's structure, risky, cutting- edge technologies cannot be developed.

Which one of the following is an assumption on which the argument depends?

a. Cutting-edge technologies are typically developed by entrepreneurs, not by big corporations.
b. Only single individuals will make risky decisions.
c. An individual is more likely to take a gamble on his own than in a group.
d. All heads of corporations reached their positions by taking risks.
e. All cutting edge technologies involve some risk.

Source: Beat The GMAT — Critical Reasoning | Thu May 10, 2018 10:04 pm

deloitte247: Legendary Member; Posts: 2214; Joined: Fri Mar 02, 2018 2:22 pmFollowed by: 5 members

by deloitte247 » Sat Jun 30, 2018 11:55 am

Option A - CORRECT.
This statement is an assumption of the speakers reasoning. Since most of the workers developing Cutting-edge technology are entrepreneurs who does not have a corporate understanding of how to handle and take risk when it comes to decision making, then it will be impossible for them to achieve their goals because everybody is on the same level of thinking. No one wants to be at the forefront of taking risk.

Option B - INCORRECT.
Only single individual will make decision that will not be adhered to because they are all entrepreneurs who are of the same level. That is why the organizational structure is represented as a truncated pyramid.

Option C - INCORRECT.
This option is a result of the truncated pyramid which the organization structure is represented with. In a well organized structure an individual is not allowed to make a decision on his own for a group. This is why the structure is presented as a truncated pyramid.

Option D - INCORRECT.
All head of corporation reached their positions by taking risk, but in the case of Cutting-edge technology development risk management is poor because there no corporate head to make this decision.

Option E - INCORRECT.
This statement seeks to explain why risk there is no corporate head to make decision in the case of Cutting-edge technology development. which this does not explain the assumption of the writer.

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