Management Is Turning to a Strategy of Offering More Lateral

question 330

True/False

Management is turning to a strategy of offering more lateral transfers due to the fact that many companies are operating under a flatter organization structure.
A flatter structure (as mentioned in Chapter 8)means that there are fewer managers,those who manage usually have a wider span of control.This fact reduces the opportunity of internal promotions.Managers motivate employees to stay with the company by providing lateral transfer opportunities where employees can learn new skills.

---

Definitions:

Perfectly Price Discriminate

The practice of a seller charging the maximum possible price that each consumer is willing to pay for a product, rather than charging everyone the same price.

Societal Loss

The total loss in welfare or efficiency that occurs when market equilibrium is not achieved, often due to externalities, monopolies, or other market failures.

Monopoly

A market structure characterized by a single seller who has exclusive control over the supply of a good or service.

Perfect Price Discrimination

Occurs when a firm charges the maximum amount that buyers are willing to pay for each unit.