In an Organization, the Members Do Have Generally Inward Focus

question 55

Multiple Choice

In an organization, the members do have generally inward focus. The day-to-day attention of many members of the organization may not get external focus to look for ideas, support and feedback. The possible solution for such a situation may be:

• A) To ensure the strategic and operational plans clearly indicate the priorities and strategies for the organization
• B) To communicate, communicate, and communicate!
• C) To ensure that authority levels are clearly spelled out for typical situations
• D) To have employees go outside the organizational walls

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Definitions:

Allocative Efficiency

A state of the economy in which production represents consumer preferences; in other words, every good or service is produced up to the point where the last unit provides a marginal benefit to consumers equal to the marginal cost of producing it.

Long-Run

A period of time in economics during which all factors of production and costs are variable, allowing for complete adjustment to changes.

Average Total Cost

The sum of average variable costs and average fixed costs, or simply the total cost divided by the quantity of output produced.

Constant-Cost Industry

An industry in which the entry and exit of firms have no effect on the prices firms in the industry must pay for resources and thus no effect on production costs.