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The basic assumption of organizational theory that rationality require

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The basic assumption of organizational theory that rationality require  [#permalink]

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New post Updated on: 10 Jan 2019, 22:03
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33% (02:42) correct 67% (02:37) wrong

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The basic assumption of organizational theory that rationality requires both workers and management to work for the greater benefit of the firm is severely flawed for several reasons. A classic argument of organizational theory posits that workers in a plant which produces watches would be interested in producing as many watches as possible in the least amount of time because increased productivity would mean higher profits which would then mean, in the long run, higher wages. However, this argument exhibits several serious errors. First, it presumes that higher profits will automatically lead to higher wages. History has shown that this is the case only following struggles between management and workers and does not come about as the result of the management’s rational consideration. Second, proponents of this argument presume that since management assumes that there is a connection between profits and wages, the workers also share the same assumption. And yet, workers often base their demands for higher wages on their idea of a livable income rather than the profits of the firm. Third, organizational theory falsely assumes that workers will always aim to increase their individual incomes. In reality, they may prefer fewer working hours, a more relaxed work pace and higher availability of jobs in their community rather than maximizing their own individual incomes.

1. Which of the following sentences would provide the best continuation of the passage?

A. Despite all these flaws, organizational theory can still be a useful tool in predicting the interactions between workers and management.
B. However, workers in community X preferred to maximize their own incomes over working fewer hours every day.
C. Statistics have shown that over 75% of workers rated their personal income as secondary to the number of jobs available in their area.
D. Because workers indicate preferences other than maximizing their individual incomes, the Behavioral Economic Theory is a more accurate model of workers' behavior.
E. Therefore, further study is needed before the merits of organizational theory's approach to workers' preferences can be judged.

Answer Choice C
This sentence logically connects to the last sentence of the passage and supports the author's arguments that organizational theory is flawed.
Remember, in this type of question we are looking for a sentence that can be a legitimate part of the passage - we are NOT looking for a conclusion sentence or a sentence which begins a new topic\paragraph\passage.


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Originally posted by reto on 02 Sep 2015, 09:49.
Last edited by workout on 10 Jan 2019, 22:03, edited 1 time in total.
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Re: The basic assumption of organizational theory that rationality require  [#permalink]

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New post 02 Sep 2015, 11:32
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Re: The basic assumption of organizational theory that rationality require  [#permalink]

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New post 10 Jan 2019, 22:11

+1 kudos to the posts containing answer explanations of all questions


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Re: The basic assumption of organizational theory that rationality require  [#permalink]

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New post 11 Jan 2019, 04:07
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The author asserts that assumption made by the organizational theory that rationality requires both workers and management to work for the betterment of the firm is flawed. Goes on the show three reasons why and the passage ends with other preferences of workers other than maximizing their personal income.


1. Which of the following sentences would provide the best continuation of the passage?

A. Despite all these flaws, organizational theory can still be a useful tool in predicting the interactions between workers and management. Author does not prefer org theory at all and hence this ending could not be expected.
B. However, workers in community X preferred to maximize their own incomes over working fewer hours every day. "However" is an unnecessary contrast word here. Discard.
C. Statistics have shown that over 75% of workers rated their personal income as secondary to the number of jobs available in their area. HOLD - a good candidate as the passage was talking about exactly this issue towards the end.
D. Because workers indicate preferences other than maximizing their individual incomes, the Behavioral Economic Theory is a more accurate model of workers' behavior. HOLD - a likely candidate because the organizational theory is definitely not what the author supports as correct so something else could replace. But can the author without introducing the other theory directly support it? Suspect.
E. Therefore, further study is needed before the merits of organizational theory's approach to workers' preferences can be judged. It has already been judged - so further study is not required as per passage.

Between (C) and (D) - C seems more likely as D refers to a hitherto unmentioned theory and the author would not be able to connect it to the existing passage.

C wins.
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Re: The basic assumption of organizational theory that rationality require  [#permalink]

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New post 17 Mar 2019, 04:50
My line of reasoning was as follows:
a) the passage is not about interactions between workers and management so we cannot continue on those lines
b)This is contradictory to the last statement
The passage follows a structure: 1. problem
2. elaboration and not contradiction
c)correct
d) we cannot be sure of a new theory
e) The question asks to continue the passage rather than concluding it. 'Therefore' prompted me to eliminate the option (not sure about this one as it just concludes the last issue and not the whole passage)

Where am I wrong? Can you give your explanations as well?
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Re: The basic assumption of organizational theory that rationality require   [#permalink] 17 Mar 2019, 04:50
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