Complex and Ambiguous Rules in Resource Allocation Decisions Cause Employees

question 104

Multiple Choice

Complex and ambiguous rules in resource allocation decisions cause employees affected by those decisions:

• A)to disown their Machiavellian values.
• B)to engage in more organizational politics.
• C)to disband their politically motivated networks.
• D)to find resources elsewhere.
• E)None of these are outcomes of complex and ambiguous rules in resource allocation decisions.

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Definitions:

Substitution Effect

A change in consumption patterns due to a change in the relative prices of goods, leading consumers to replace more expensive items with less expensive ones.

Price of Labor

The wage rate or compensation given to workers for their labor services, typically influenced by the supply and demand for labor in the market.

Output Effect

The output effect describes how changes in price can affect the quantity of goods or services produced by firms, often related to the concepts of supply and demand.

Technological Improvement

Enhancements or advancements in technology that increase productivity, efficiency, or quality in the production of goods and services.