Which One of the Following Is Not a Reason Why

question 50

Multiple Choice

Which one of the following is not a reason why companies might use outsourcing to improve performance of strategy-critical activities?

• A) Improving a company's chances for outclassing rivals in the performance of strategy-critical activities and turning a core competence into a distinctive competence
• B) Promoting quick establishment of a total quality culture
• C) Speeding internal decision-making and shortening the time it takes to respond to changing market conditions
• D) Capitalizing on the partnerships with outsiders to enhance its arsenal of capabilities and thus contribute to better strategy execution
• E) Helping decrease internal bureaucracies and flatten the organizational structure

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Definitions:

Gain-Sharing Plan

A compensation strategy where employees receive bonuses based on the company's profits or improvements in performance, fostering a sense of ownership and teamwork.

Lump-Sum Increase

A one-time payment given to employees, typically in lieu of recurring pay raises, often based on performance.

Skill-Based Pay

A compensation strategy where employees are paid based on the number, depth, or complexity of skills and knowledge they can bring to their work, rather than their job title or position.

Job Assignment

The designation of particular work roles or activities to employees based on their skills, interests, and the needs of the organization.