Research on the Effects of Participative Management (PM) on Employees

question 8

Multiple Choice

Research on the effects of participative management (PM) on employees' performance and satisfaction indicates that

• A)PM has no effect on either.
• B)PM has a small positive effect on both.
• C)PM has a large effect on satisfaction, but a small effect on performance.
• D)PM has a large positive effect on both.
• E)PM has a large effect on performance, but no significant effect on satisfaction.

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Definitions:

Minimum Acceptable

The lowest level or standard that will be considered satisfactory or acceptable.

Profit Margin

A financial metric indicating the percentage of revenue that remains as profit after all expenses are deducted.

DuPont Formula

A method of performance measurement that breaks down return on equity into three component parts.

Investment Turnover

A measure of a company's efficiency in using its invested capital to generate revenues, often calculated as sales divided by the average invested capital.