Evaluating and Rewarding Managers Based on Absorption Costing Income Can

question 135

True/False

Evaluating and rewarding managers based on absorption costing income can lead to overproduction.

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Definitions:

Bureaucratic Ritualism

Involves bureaucrats getting so preoccupied with rules and regulations that they make it difficult for the organization to fulfill its goals.

Dehumanization

Occurs when bureaucracies treat clients as standard cases and personnel as cogs in a giant machine. This treatment frustrates clients and lowers worker morale.

Bureaucracies

Complex organizational structures with fixed rules, a hierarchy of authority, and a full-time administrative staff, designed to coordinate and control the work of many individuals.

Bureaucratic Inertia

Refers to the tendency of large, rigid bureaucracies to continue their policies even when their clients' needs change.