When There Are Limits on the Usefulness of Direct, Personal

question 78

Multiple Choice

When there are limits on the usefulness of direct, personal supervision by managers, organizations have to find other ways to control their activities. In such a situations, which of the following, typically, is the first step taken by the organizations?

• A) decreasing the level of standardization
• B) increasing the level of horizontal differentiation
• C) increasing the division of labor
• D) increasing the span of control

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Definitions:

Visual Nearsightedness

A common eye condition characterized by difficulty seeing distant objects clearly while close objects appear normal, also known as myopia.

Additional Utility

The extra satisfaction or benefit derived from consuming one more unit of a good or service.

Behavioral Economics

A field of study that analyzes the effects of psychological, social, cognitive, and emotional factors on the economic decisions of individuals and institutions.

Status Quo

The existing state of affairs or current condition, typically used to describe situations before any changes are made.