In Order to Gain Employee Acceptance of a Control System

question 75

Multiple Choice

In order to gain employee acceptance of a control system, managers should

• A)set performance standards that employees view as possible to achieve.
• B)tell employees that they need not necessarily use the standards.
• C)focus on controlling negative behavior rather than enforcing positive behavior.
• D)set standards low enough that all employees can easily meet them.
• E)make their own decisions while setting performance standards.

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Definitions:

Excess Capacity

A situation where a company or economy can produce more goods or services than currently demanded, often leading to inefficiency and lower prices.

Excess Capacity

A scenario where a firm or industry has unused production resources, leading to inefficiencies and lowered profitability.

Productive Inefficiency

A situation where resources are not used in the most cost-effective way, resulting in a higher production cost than necessary.

Allocative Inefficiency

A situation where resources are not allocated efficiently, leading to a mismatch between what is produced and what consumers actually demand, causing wastage and loss of potential welfare.