From the 1930s through the mid-1980s, General Motors consistently gave promotions and bonuses to managers who kept a low profile and avoided controversy. This is an example of which of the following organizational constraints?
A) performance evaluation
B) reward systems
C) formal regulations
D) system-imposed time constraints
E) historical precedents
B
Explanation: B) The organization's reward system influences decision makers by suggesting which choices have better personal payoffs. If the organization rewards risk aversion, managers are more likely to make conservative decisions.
You might also like to view...
Dividend payments change directly with changes in earnings per share
Indicate whether the statement is true or false
Manfred Manufacturing is involved in the production of machine parts. The company uses 600,000 pounds of
steel annually. The current purchasing cost for steel is $3.20 per pound. The carrying cost for inventory is 10 percent of the purchase price. The cost of ordering steel is $800 per order. The company has decided to maintain a safety stock of 15,000 pounds. The delivery time per order is 6 days. The company works 365 days a year. a. Determine the optimal EOQ. b. How many orders will be placed annually? c. What is the average inventory? d. What is the inventory order point? (That is, at what level of inventory should a new order be placed?) e. What is the company's total inventory cost for the year?