A Company Recently Made Changes to Its Organizational Structure

question 99

Multiple Choice

A company recently made changes to its organizational structure. While deciding upon the changes to be implemented, the company invited many employees to discuss the issue with the senior management. This enabled the employees to hear the relevant arguments both for the chosen alternative and against the rejected alternatives. An advantage of using employees in this group discussion was that

• A) the employees dominated the discussions and promoted their ideas.
• B) the phenomenon of groupthink was encouraged.
• C) the satisficing method of decision making was employed.
• D) goal displacement was furthered.
• E) the employees understood why the decision was made.

Differentiating between traditional cost control and modern cost management approaches.

Identifying the production capacity and understanding the implications of bottlenecks in manufacturing.

Recognizing non-value added activities and understanding root cause cost drivers in manufacturing processes.

Comprehending the concept of cost drivers and their analysis in cost management.

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Definitions:

Underpaying

The practice of compensating employees with wages that are below their job's market value or not commensurate with their skill level.

Human Resources

The department within an organization that deals with the hiring, administration, and training of personnel.

Fair Labor Standards Act

U.S. legislation enacted in 1938 to protect workers against unfair pay and employment practices, establishing minimum wage, overtime pay eligibility, and child labor standards.

Compa-ratio

A comparison ratio that measures an employee's salary relative to the median or midpoint of the market rate for their job.