Rosario Is Examining a Summary Chart on Four Firms' Organizational

question 147

Multiple Choice

Rosario is examining a summary chart on four firms' organizational characteristics.She feels which of the organizations below is most likely to have the greatest chance to be successful in the next year?

• A)Organization A uses self-managed teams,pays its workers a little above the average for the industry and has regular "state of the business meetings."
• B)Organization B has a pay policy that matches the industry average for each job category,maintains special parking,cafeteria,and restroom facilities for its managers,and conducts performance appraisals every two years.
• C)Organization C has gone through regular quarterly lay-offs the last few quarters,established a policy last month where all decisions involving the expenditure of fifty dollars or more must be approved by two managers and has temporarily suspended all performance evaluations for the year.
• D)Organization D maintains a training program that is very selective with regard to employee involvement.They recently instituted a large-scale job flexibility program that "blurs" the lines between job duties and passed a strict pay secrecy policy last month.

---

Definitions:

Willingness to Pay

The maximum amount an individual is prepared to expend on a good or service to acquire it.

Cell Phone

A portable telephone that uses wireless technology to send and receive calls and data.

Demand Curve

A graph showing the relationship between the price of a good or service and the quantity of it that consumers are willing to purchase at different prices.

Price Sensitivity

The degree to which the demand for a product is affected by changes in its price.