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Senior Executives at a Large Tire Company Learned That One

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Senior executives at a large tire company learned that one line of tires had a tendency to fall apart in very warm weather.This resulted in several vehicle accidents in the Middle East and South America.However,the executives did not hear about these problems until several weeks after they were known to lower-level managers.Although the senior executives encourage staff to communicate all information,the lower-level staff held back the information for fear that they might lose their jobs.Which communication concept best describes this communication situation?


Definitions:

Total Expenditures

The sum of all expenses and spending by an individual, organization, or government within a specified period.

Isocost Line

A graph line that shows all combinations of inputs which cost the same total amount.

Capital

Financial assets or the financial value of assets, such as cash and goods, used to generate income or wealth.

Labor

The utilization of human physical and mental capabilities in the crafting of goods and delivery of services.

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