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Table 12.3 G.C.I. Is a Company with a Highly Political Environment. to Environment

question 92

Multiple Choice

Table 12.3
G.C.I. is a company with a highly political environment. To survive, managers must be adept at organizational politics. The company has clear lines of authority, operating procedures, and company policies. But the CEO confers favors based on whom he likes at the moment. Performance goals are not clear, career paths are confusing, and what constitutes success for the company is never clarified; profit, market share, quality, customer satisfaction, or what. The new marketing director sees that production and finance have a great deal of power. So he approaches the production director and offers to work closely with him to avoid creating demand he can't meet. When the marketing director has an open personnel position and knows that the production director desperately needs an assistant, the marketing director surrenders his position to the production director. Seeing this relationship develop, the finance director begins to give marketing only direct, selected information. He avoids meeting the marketing director except in group meetings where there is no opportunity to talk one-on-one. The marketing director immediately understands what is happening. He decides to enlist the production director, the sales manager, and the human resource director in a plan to reduce the finance director's power or even get him fired.
-Refer to Table 12.3. The new marketing director is engaging in the organizational political tactic of:

Definitions:

Prime Cost

The sum of direct materials cost and direct labor cost, representing the direct production costs.

Cost Structure

The composition of different types of costs within a company or specific project, often categorized into fixed and variable costs.

Contribution Margin

The amount of revenue remaining after deducting variable costs, which can then be used to cover fixed costs and contribute to profit.

Product Mix

The variety of products that a company produces or sells, considering the diversity in type, size, and quality.