Changing a Problem Culture

question 80

Multiple Choice

Changing a problem culture

• A)is one of the toughest managerial tasks because of the heavy anchor of ingrained behaviors and ways of doing things.
• B)is best done by instituting an aggressive program to train employees in the ways and beliefs of the new culture to be implanted.
• C)is best done by selecting a team of key employees to lead the culture change effort.
• D)requires writing a new statement of core values, having a series of lengthy meetings with employees to explain the new culture and the reasons why cultural change is needed, and then having both employees and shareholders vote to ratify and adopt the new culture.
• E)can be done quickly only if managers tie incentive compensation to exhibiting the desired new cultural behaviors and if managers visibly praise people who exhibit the desired new cultural traits.

Understand the influence of external preferences on utility and allocation decisions.

Examine the role of a social welfare function in assessing the well-being of a community.

Understand the principle of willingness to pay in a networked environment and its effects on consumer decision-making.

Demonstrate knowledge of how different pricing strategies can impact consumer behavior and firm profit over the product lifecycle.

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Definitions:

Deadweight Loss

A loss of economic efficiency that occurs when the equilibrium for a good or service is not achieved or is achievable but is not achieved.

Vertical Equity

The principle that taxpayers with higher incomes should pay more in taxes than those with lower incomes.

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, indicating the percentage of additional income that is paid in tax.

Efficiency

The optimal use of resources to achieve the best possible outcome or output with minimal waste.