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Case 12.1 ​

question 7

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Case 12.1

Harvey is considering implementing team-building management in his company.He wants to start with teams that work on the production line.He wants groups of five to fifteen people,responsible for one clearly defined product,and he wants them to be individually accountable for the work of the team as a whole.Harvey believes that effective teams permit free expression of feelings as well as ideas,have members who listen to each other,and have well-understood tasks and objectives.

Cynthia is a first-line supervisor in Harvey's company.She values her people and their productivity relatively equally.She seeks to be proactive in her management and works hard at rewarding the contribution of ideas and recognizing accomplishments.Her fellow manager William,in contrast,is far more task-oriented and is more concerned with production than with his people.To William,employees are instruments of production.​
-Refer to Case 12.1.Assuming William possesses a certain amount of self-awareness,he would be well advised to​


Definitions:

Fixed Costs

Costs that do not change with the level of goods or services produced within a certain range; such costs are incurred regardless of business activity levels.

Break-even Point

The point at which total income matches total costs, leading to a situation where there is no gain or deficit.

Variable Cost

Costs that vary directly with the level of production or the volume of services rendered, such as raw materials and direct labor.

Fixed Costs

Costs that remain constant regardless of the amount of products or services a company generates, including expenses like lease payments, wages, and premiums.

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