What Is the Advantage of Establishing and Administering Policies in Organizations

question 10

Multiple Choice

What is the advantage of establishing and administering policies in organizations?

• A) It allows companies to handle situations more fairly and objectively.
• B) It allows companies to address issues on a case-by-case basis.
• C) It eliminates the need for documentation and record keeping.
• D) It encourages employees to defend themselves by claiming ignorance of disciplinary norms.
• E) It leaves a lot of room for subjective decision making.

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Definitions:

Equilibrium Wage Rate

The compensation level where labor availability matches labor needs.

Profit-Maximizing

A strategy or approach aimed at achieving the highest possible profit.

Perfectly Competitive

A market structure characterized by many small firms, homogeneous products, and easy market entry and exit, leading to minimal profit margins for the firms.

Marginal Product

Marginal Product is the increase in output that results from employing one more unit of a factor of production, holding all other factors constant.