According to Chester Barnard, Directives Falling Within the Zone of Indifference

question 53

True/False

According to Chester Barnard, directives falling within the zone of indifference are obeyed, whereas those falling outside of it are not considered legitimate under the terms of the psychological contract.

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Definitions:

Implied Authority

The authority of an agent to perform acts which are reasonably necessary to accomplish the purpose of an organization.

Express Authority

Legal authority granted explicitly in a document or spoken agreement, allowing individuals or entities to perform certain acts.

Usual Business

Operations and activities that are considered normal and routine in the day-to-day operations of a company.

Capital Contributed

This refers to the amount of money or value of other assets that owners or shareholders have provided to a company for use in the business.