________ Involves Organizational Members Learning Ways to Refine and Improve

question 88

Multiple Choice

________ involves organizational members learning ways to refine and improve existing organizational behaviors and procedures to increase effectiveness.

• A) Excellence
• B) Exploration
• C) Exploitation
• D) Extrapolation

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Definitions:

Moral-Hazard Problem

The moral-hazard problem arises in situations where one party's willingness to take risks is increased because the negative consequences of those risks will be borne by another party.

Principal-Agent Problem

A dilemma in economics where one party (agent) is supposed to act in the best interest of another (principal) but may have a tendency to act in their own interest.

Asymmetric Information

A situation in which one party in a transaction has more or superior information compared to the other.

Informational Asymmetry

A situation where one party in a transaction has more or better information compared to another, potentially leading to an imbalance in power or unfair transactions.