Human Resources Certification Institute (HRCI) Practice Exam

What type of organization strives to grant as much decision-making power to the employees as possible?

1. A high-involvement organization

2. A learning organization

3. An Internet start-up

4. A nonprofit

The correct answer is: A high-involvement organization

A high-involvement organization is one that emphasizes engaging employees in the decision-making processes and providing them with the authority and responsibility to contribute to organizational goals. This model fosters an environment where employees feel empowered and valued, which can lead to increased motivation, job satisfaction, and overall productivity. In contrast, a learning organization focuses primarily on fostering continuous learning and adaptability within its workforce. While such environments may encourage employee input, the core emphasis is more on growth and education than on decentralized decision-making. An Internet start-up may exhibit some characteristics of high involvement due to its dynamic and often informal structure, but being a start-up does not inherently guarantee that decision-making power is distributed widely among employees. The focus can vary based on the company's culture and leadership style. Nonprofits often prioritize mission-driven outcomes and may involve employees in decision-making, but this does not always equate to a structured approach to high involvement. Their focus might be more on serving their community rather than on decision-making structures. Thus, the nature of a high-involvement organization directly aligns with the concept of granting employees significant decision-making power, making it the correct choice in this context.