Human Resources Certification Institute (HRCI) Practice Exam

Which of the following terms describes an organization that is rigidly devoted to policies, rules, and procedures?

1. Centralized

2. Formal

3. Decentralized

4. Bureaucratic

The correct answer is: Bureaucratic

The term that describes an organization rigidly devoted to policies, rules, and procedures is "bureaucratic." Bureaucratic organizations are characterized by a high degree of formalization and standardization. They typically have a strict hierarchy and a clear chain of command, which is emblematic of their commitment to established policies and procedures. This structure is intended to ensure consistency, predictability, and control within the organization, making it easier to manage large numbers of employees and adhere to regulatory requirements. In contrast, a centralized organization concentrates decision-making authority at the top levels, but this doesn't inherently imply a strict adherence to rules and procedures like bureaucratic structures do. A formal organization emphasizes established processes, but the term doesn't capture the rigidity that bureaucratic organizations possess. Decentralized organizations distribute decision-making closer to the operational level, typically allowing for more flexibility and adaptability, which contrasts with the rigidity of bureaucratic firms.