The Senior Manager at a fiRm Sets a Sales Target

question 22

Multiple Choice

The senior manager at a firm sets a sales target of 20 000 units for the month. Most other firms in the market also have similar targets. However, the maximum possible sales in the market was found to be 35 000 units per month. This suggests that:

• A) growth maximization is the firm's goal.
• B) the firm does not have principal-agent problems.
• C) the senior manager exhibits satisficing behaviour.
• D) salaries at this firm are linked to profits.

Understand proactive leadership and its significance in organizational change and development.

Identify the components and importance of a vision in leadership.

Recognize the importance of leader-member exchanges (LMX) and their influence on workgroup dynamics.

Comprehend the significance of questioning and feedback for effective leadership.

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Definitions:

Factor Analysis

A statistical method used to identify underlying variables, or factors, that explain the pattern of correlations among multiple observed variables.

Code of Ethics

A set of principles and values that guide the behavior and decision-making process of individuals within an organization or profession.

Equal Opportunity

The principle of treating all people the same, without discrimination, especially in relation to employment and access to education.

Conflicts of Interest

Situations where an individual's personal interests potentially interfere with their professional duties and responsibilities.