The Purchasing Manager Is Evaluated by His/her Supervisors Based on Purchasing

question 135

Multiple Choice

The purchasing manager is evaluated by his/her supervisors based on purchasing inventory at the lowest price. Consequently, the purchasing manager knowingly orders materials only based on price. This has resulted in the purchase of inferior quality materials. This improved the purchasing manager's performance evaluation, but had a negative impact on production due to an increase in scrapped materials. This situation is an example of a failure of:

• A) goal congruence
• B) management perquisites
• C) management by exception
• D) control theory

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Definitions:

Marketing Research

A systematic, objective process of getting information about potential customers to guide marketing decisions.