The TQM View of Organizational Structure States That

question 11

Multiple Choice

The TQM view of organizational structure states that:

• A)Employees must support management decisions.
• B)Management must support employees.
• C)Customers want quality products.
• D)Middle management must support and enforce top management decisions.

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Definitions:

Industrial Regulation

Oversight and rules established by government agencies to govern how businesses can operate in certain industries to promote fair practices and competition.

X-inefficiency

A situation where a firm operates with higher than necessary costs due to a lack of competition or other inefficiencies, not achieving maximum productivity.

Principal-agent Problems

Conflicts of interest and challenges in monitoring that arise in relationships where one party (the agent) is supposed to act in the best interest of another (the principal).

Paradox of Voting

The situation where individual rationality leads to a collective decision that is worse for everyone involved.