Giving Managers an Ownership Stake in a Company Is an Example

question 319

Multiple Choice

Giving managers an ownership stake in a company is an example of

• A) a command system.
• B) an incentive system.
• C) a system that encourages managers to become agents that monitor their principals.
• D) economies of scope.

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Definitions:

Disjunctive Task

A task for which the group’s performance is dependent on the performance of the best group member.

Social Loafing

The situation in which persons show reduced effort in achieving objectives when they are part of a team versus working individually.

Self-Managed Teams

Groups of employees who are given the autonomy and responsibility to manage themselves and their work tasks without direct supervision.

Specialized Roles

Positions or jobs within an organization that require a specific set of skills or expertise, contributing to more efficient and effective performance.