Contingency Factors That Can Influence the Success of a TQM

question 53

Multiple Choice

Contingency factors that can influence the success of a TQM program in a negative way include all of the following EXCEPT:

• A) tasks make high skill demands on employees.
• B) management expectations are unrealistically high.
• C) middle managers are dissatisfied about loss of authority.
• D) workers are dissatisfied with other aspects of organizational life.
• E) managers wait for big, dramatic innovations.

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Definitions:

Sunk Cost

An expense that is irreversible and non-recoverable, hence it should not affect upcoming corporate choices.

Incremental Cost

The additional cost incurred to produce one more unit of a good or service.

Opportunity Cost

The potential benefit that is missed out on when choosing one alternative over another.

Opportunity Costs

The cost of an alternative that must be foregone to pursue a certain action. Put another way, the benefits you could have received by taking an alternative action.