Corporate power comes from the people who voluntarily agree to comply with a leader's proposal. Formal authority and control over a company's budgets and resources are some sources of corporate power. Corporate power also comes from the people who voluntarily agree to comply with a leader's proposal. Which one is most important for the successful functioning of today's corporate management?
What will be an ideal response?
Given well-functioning labor markets, managers can voluntarily leave companies where power is used to push through unsupported proposals. All else equal, it may be more productive to gain voluntary support for proposals. That being said, it is important to create an architecture where decision makers initiate proposals that improve firm value. For this reason, it may be a good move to grant resource control to managers with the most potential to increase firm value.
You might also like to view...
A group of banks that agree to lend one another money in case of unexpectedly large withdrawals is a ________
Fill in the blank(s) with correct word
The cost of producing a tube of tooth paste is $0.05. If the market for tooth paste is monopolistically competitive, a manufacturer who charges $0.05 for each bottle will ________
A) shut down production in the short run B) exit the industry in the long run C) incur a loss in the short run D) earn zero economic profits in the short run