Backward Integration Is Effective in All of These Cases EXCEPT

question 76

Multiple Choice

Backward integration is effective in all of these cases EXCEPT

• A) when an organization competes in an industry that is growing rapidly.
• B) when an organization has both capital and human resources to manage the new business of supplying its own raw materials.
• C) when an organization needs to acquire a needed resource quickly.
• D) when the advantages of stable prices are not particularly important.
• E) when present suppliers have high profit margins.

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Definitions:

Evaluation System

A structured process used by organizations to assess, review, and enhance performance and effectiveness, typically of employees or processes.

Expectancy Theory

Is a fairly complex process theory of motivation that casts the employee in the role of decision maker. Basically, an employee decides whether or not to exert effort, depending on the outcomes he or she anticipates receiving for those efforts as based on calculations concerning expectancies, instrumentalities, valences, and the links among these three components.

ProMES

A performance management system that aims to improve organizational effectiveness by clarifying expectations and objectives.

Goal Theory

First proposed by Ed Locke, goal theory is a fairly simple model of motivation based on the premise that people with goals work harder than people without goals. Beyond that, the theory suggests that not all goals are created equal, and that goals that are difficult and yet specific and concrete will motivate employees best.