Advocates of the Quality Approach Believe That Most U

question 48

Multiple Choice

Advocates of the quality approach believe that most U.S. companies' performance management systems are incompatible with the quality philosophy for a number of reasons. Which one of the following is among these reasons?

• A)Most existing systems measure performance in terms of quality, not quantity.
• B)They involve both internal and external customers in setting standards and measuring performance.
• C)Companies share financial rewards of successes with employees according to how much they have contributed to them.
• D)Rewards are connected to business results and profits.
• E)Employees are held accountable for good or bad results to which they contribute but do not completely control.

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Definitions:

Von Neumann-Morgenstern

A utility theorem that represents individuals' preferences over risky choices, and is foundational in expected utility theory.

Utility Function

A mathematical model in economics that represents how different quantities of goods or services can provide satisfaction to consumers.

Income

The reward garnered over time, generally in a consistent pattern, from occupational or investment sources.

Expected Utility Function

A concept in economics that predicts the utility or satisfaction a rational individual expects to receive from different outcomes, used in decision making under uncertainty.