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Firms grant decision rights to teams of employees for all the following reasons except: to manage activities to make products to make basic investment decisions

  1. Firms grant decision rights to teams of employees for all the following reasons except:
  • to manage activities
  • to make products
  • to make basic investment decisions
  • to recommend actions
  1. Incentive problems in firms typically occur because:
  • employees are sometimes very risk averse.
  • most of the costs of exerting effort are borne by employees rather than their employers.
  • employees typically have most of their human capital invested in a single firm.
  • almost all employees will have conflicts with their fellow employees.
  1. One potential problem with internal labor markets is
  • a greater likelihood of employee turnover.
  • supervisor shirking will be more prominent in the firm.
  • that incentive conflicts between employees and managers will be greater.
  • restricted competition for higher-level jobs within the firm.
  • a and c only.
  1. Economics typically assumes that human beings perceive work effort as
  • a form of disutility
  • utility enhancing
  • quite an enjoyable experience
  • a way to express themselves in their jobs.
  • none of the above.
  1. Specialized task assignment greatest cost is ignoring the foregone ______________across tasks.
  • comparative advantage
  • flexibility
  • complementarities
  • lower cross training expenses
  1. Organizational architecture varies from firm to firm. The three big external determinants of a firm's administrative structure are:
  • decision rights, rewards, and technology.
  • government regulation, technology, and decision rights.
  • government regulation, technology, and markets
  • government regulation, technology, and performance rewards.
  • decision rights, rewards, and evaluation systems.
  1. The ratchet effect refers to:
  • basing a performance evaluation on expected future performance.
  • A particular type of incentive pay.
  • The idea that most managers are afraid to penalize employees for bad performance.
  • Basing next year's standard of performance on this year's actual performance.
  • None of the above.

  1. Which of the following is not a determinant of a firm's org. architecture?
    • the business environment
    • a firm's business strategy
    • a firm's customer base
    • all are determinants of a firm's O.A.

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