Through Informal Talks with Employees, Managers Realized Employees Thought Their

question 15

Multiple Choice

Through informal talks with employees, managers realized employees thought their plant would close, resulting in massive layoffs. A few were already seeking other employment. The managers responded promptly and aggressively to this rumor, assuring employees of the health of the corporation and the reasonable security of their jobs. Your managerial know-how tells you that these managers are attempting to

• A) ignore inaccurate information because they know the truth eventually will become known.
• B) respond to inaccurate grapevine information to minimize the damage such misinformation might cause.
• C) eliminate the grapevine.
• D) use the grapevine as a managerial tool.
• E) reduce the credibility of information from the grapevine.

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Definitions:

Work in Process Inventory

Inventory that includes goods that are in the production process but are not yet completed.

Finished Goods Available

The total quantity of manufactured products that are completed and ready for sale to customers at the end of an accounting period.

Raw Materials

Basic materials that are used in the production process of manufacturing goods, prior to being transformed into finished products.

Manufacturing Operations

All activities related to the production of goods, from raw material procurement to final product delivery.