Peter, the owner of Happy Burger, is involved in the company's daily decisions and has established procedures for every task. Th
e company rules are clearly specified in the handbook, and Peter also believes in close supervision of all employees. Happy Burger is a(n) _______ organization.
Mechanistic organization is the organization that is hierarchical and bureaucratic
It is characterized by its;
Highly centralized authority.
Formalized procedures and practices.
Specialized functions.
Mechanistic organizations work well in stable, simple environments. Managers integrate the activities of clearly defined departments through formal channels and in formal meetings. Often, they feature many hierarchical layers and a focus on reporting relationships.
Opportunity cost is the forgone benefit that would have been derived by an option not chosen.
Explanation:
Opportunity costs represent the potential benefits an individual, investor, or business misses out on when choosing one alternative over another. Because by definition they are unseen, opportunity costs can be easily overlooked. Understanding the potential missed opportunities foregone by choosing one investment over another allows for better decision-making.
