Suboptimization refers to actions taken by a manager that are in his/her best interest but not in the best interest of the firm as a whole.

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Suboptimization occurs when a manager pursues goals that benefit their own department or area of responsibility, without considering the impact on other parts of the organization. This can result in decisions that are not aligned with the overall objectives of the firm and may lead to inefficiencies, conflicts, and missed opportunities.

Suboptimization Refers to Actions Taken by a Manager That Are