InvestorPro,an Investment Consulting Firm Plans to Flatten Its Traditional Hierarchy

question 19

Multiple Choice

InvestorPro,an investment consulting firm plans to flatten its traditional hierarchy structure.The intent is to eliminate authoritarian positions in its structure and create new ones that are operationally logical.The top management agrees that none of the employees would be laid-off but only transferred from their positions to the new ones.This plan,when announced to its employees,is not taken well by lower- and middle- level management who did not want the structure to be changed.When asked for a reason,they were not able to put a strong argument.Which of the following best describes this effect?

• A) Hawthorne effect
• B) Paradigm effect
• C) Audience effect
• D) External validity

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Definitions:

Internal Locus Of Control

A psychological concept that describes individuals who believe they have control over the outcomes of their actions and experiences, as opposed to being controlled by external forces.

External Locus Of Control

The belief that external forces beyond one’s control determine life’s outcomes.

Ethical Behavior

Acting in ways consistent with societal norms and values, emphasizing honesty, fairness, and integrity.

Terminal Value

Long-term life goals or objectives that individuals or organizations strive to achieve, guiding their actions and decisions.