A-Z Planning (Scenario) Organizations ABC and XYZ Are Both in the Same Industry

question 34

Multiple Choice

A-Z Planning (Scenario)
Organizations ABC and XYZ are both in the same industry and compete for the same set of customers in the marketplace. At ABC, the plans are made at the top level of management each year and then are formulated for and announced to each of the mid-level and first-level managers. At XYZ, the plans are made at the top, and then those managers meet with their subordinates at the next level and mutually agreed-to goals are established with them. The mid-level managers then meet with their first-level managers and mutually agreed-to goals are established with them. Finally, the first-level managers meet with each of their employees and mutually agreed-to goals are established with them.
-Which organization is more likely to have higher employee performance and organizational productivity?

• A) Organization XYZ, because the employees participated in the planning process and know specifically what their objectives are.
• B) Neither, because the hierarchy of organizational goals is clearly defined at each level.
• C) Neither, as they are both in the same industry and facing the same environments.
• D) Organization ABC, because the plans are formulated by management for each level of the organization.

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Definitions:

Price Ceiling

A legal maximum price that can be charged for a good or service, typically set by government to prevent prices from becoming too high.

Price Floor

A government or regulatory-imposed minimum price set above the equilibrium market price, aimed at ensuring that the market price of a good or service cannot fall below a certain level.

Shortage

A market condition where the demand for a product exceeds the supply at a given price, often leading to higher prices.

Surplus

A situation where the quantity of a good or service supplied exceeds the quantity demanded at the current price.