In an Organization,the Interests of the Top Management Is in Conflict

question 72

Multiple Choice

In an organization,the interests of the top management is in conflict with that of the middle management.Which of the following theory is consistent with this situation?

• A) Control theory
• B) Agency theory
• C) Attribution theory
• D) Equity theory

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Definitions:

Labor Market

The input/factor market in which households supply work for wages to firms that demand labor.

Substitution Effect

The change in consumption patterns due to a change in the relative prices of goods, leading consumers to substitute cheaper goods for more expensive ones.

Wage Decrease

A reduction in the pay rate of a worker or a group of workers.

Labor Supply

The total hours that workers are willing and available to work at a given wage rate, within a specific labor market.