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Managers Should Consider Certain Key Factors When Making Decisions About

question 18

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Managers should consider certain key factors when making decisions about how best to design an organization.These are

Understand the psychological and physical implications of job demands, especially those requiring suppression of emotions.
Familiarize with popular measures of job satisfaction and how they assess various aspects of employee well-being.
Understand the dynamics of deregulation on economic efficiency.
Analyze the consequences of pork-barrel politics and the principal-agent problem in public choice theory.

Definitions:

Equity Beta

A metric that measures the volatility of a stock or portfolio in relation to the overall market; a measure of systemic risk.

Capital Structure

The mix of debt and equity that a company uses to finance its operations and growth.

Unlevered Cost

The cost of an investment that does not include the impact of borrowing; essentially the expense borne without considering the effect of leverage.

Targeted Cost

The desired or estimated cost of a product or project, set in order to achieve competitiveness and profitability objectives.

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