Question

\he who has the gold makes the rules\ refers to control of financial resources as a strategic contingency that influences horizontal power among departments.

true
false

Explanation:

Analyze the statement

The statement asserts that "He who has the gold makes the rules" refers to the control of financial resources as a strategic contingency that influences horizontal power among departments.

Evaluate strategic contingencies theory

Under the Strategic Contingencies Theory of power, departments gain horizontal power by controlling critical resources (such as financial resources/funding) that other departments depend on. Financial resources represent a primary strategic contingency because they reduce organizational uncertainty and are highly non-substitutable.

Determine the truth value

Since controlling financial resources ("the gold") directly translates to horizontal power and influence over organizational rules and decisions, the statement is accurate.

Answer:

• True (Correct answer)
• False