Agency Theory Offers a Way of Understanding Why Managers Do

question 51

True/False

Agency theory offers a way of understanding why managers do not always act in the best interests of stakeholders.

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Definitions:

Leader Effectiveness

The degree to which a leader is successful in achieving desired outcomes for their group or organization.

External Locus

The belief that external forces, rather than personal actions, control one’s life and outcomes.

Socialized Power Motivation

It describes a drive to use power for the benefit of others or the collective, rather than for personal gain.

Personal Integrity

Adherence to moral and ethical principles, demonstrating honesty and consistency in actions and values.