An Employment Contract Is an Agreement Between the Manager and Top

question 61

Multiple Choice

An employment contract is an agreement between the manager and top management designed to provide incentives for the manager to act:

• A) Independently to achieve top management's objectives.
• B) Consistently with that of other managers.
• C) Independently to achieve the manager's objectives.
• D) Independently to achieve the customer's objectives.

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Definitions:

Overconfidence

A cognitive bias where a person's subjective confidence in their judgments is greater than the objective accuracy of those judgments.

Fundamental Attribution Error

The fundamental attribution error is the tendency to overemphasize personal characteristics and underestimate situational influences when explaining someone else's behavior.

Irrational Escalation

The phenomenon where individuals continue or intensify an action or investment beyond a rational point, often due to emotional commitment or previous investments.

Commitment

The state of being dedicated to a course of action or to each other in the context of agreements or relationships.