The investment decisions of many traders on Wall Street in the early 2000s led to the downfall of several investment companies, demonstrating that employee goals were not aligned with company goals. This indicates a failure of which basic managerial function?
A) Planning
B) Organizing
C) Leading
D) Motivating
E) Controlling

Question

Quizplus · Accepted Answer

The failure indicated is in the controlling function of management, which involves ensuring that performance does not deviate from standards. Controlling includes monitoring performance, comparing it with goals, and taking corrective action as needed. The misalignment of employee goals with company goals and the subsequent downfall of companies suggest a lack of effective control mechanisms to ensure that employee actions were in line with the company's strategic objectives.

The Investment Decisions of Many Traders on Wall Street in the Early