Management Myopia Refers to Managers Who

question 8

Multiple Choice

Management myopia refers to managers who

• A) Lack motivation to reach their performance targets and in turn find it difficult to motivate subordinates.
• B) Limit their focus to short-term profits at the expense of longer-term concerns.
• C) Find themselves unable to rise beyond a certain level in the organizational hierarchy.
• D) Are promoted beyond their level of competence.
• E) Find they cannot progress within an organization due to corporate downsizing or paring of middle management layers.

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Definitions:

Socially Optimal

A state or outcome that is considered the most efficient and beneficial for society as a whole, often in terms of resource allocation or welfare.

External Cost

Costs of an economic activity that are not borne by the parties involved but are instead imposed on others or society at large.

Private Value

The value of a good or service to an individual or firm for personal use, as opposed to its value to society or the economy at large.

Socially Optimal

A situation or outcome that is best from the society's point of view, where social welfare, including benefits and costs, is maximized.