A Problem Associated with Traditional Goal Setting Is That ________

question 53

Multiple Choice

A problem associated with traditional goal setting is that ________.

• A) the narrowly defined goals inhibit a manager's ability to interpret them
• B) the high degree of reliance on employees for developing goals is not suited to many situations
• C) clarity is lost as the goals make their way down from the top of the organization to lower levels
• D) it promotes the growth of a flatter organizational structure and threatens organizational efficiency

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Definitions:

Minimum Efficient Scale

The smallest level of production at which long-run total average costs are minimized.

Diseconomies of Scale

A situation where a company or organization grows so large that the costs per unit increase, leading to reduced efficiency.

Long-run Average Total Cost

Represents the average cost per unit of output in the long-term, where all inputs are variable, allowing for the adjustment of all factors of production.

Minimum Efficient Scale

The smallest amount of production a company can achieve while still taking full advantage of economies of scale in terms of lowering the average cost per unit.