Meyer works for a new start-up technology firm, which has six highly opinionated but very committed employees. The owner of the firm, Zalman, strongly believes that he should make every decision since he is the boss. But Zalman often jumps to conclusions and does not even take time to diagnose the problem at hand because he does not like to ask any of the employees for suggestions. Moreover, Zalman's decisions are usually focused on short-term rather than long-term benefits and costs. At this point, most people in the firm agree that the decision making of the owner is going to destroy the young firm before it really gets started.The fact that Zalman's decisions are usually focused on short-term benefits and costs rather than the long term is an example of
A)social loafing.
B)the illusion of control.
C)vigilant decision making.
D)goal displacement.
E)cdiscounting the future.

Question

Quizplus · Accepted Answer

Zalman's focus on short-term benefits and costs rather than the long term is an example of discounting the future, which is the tendency to place a lower value on future costs and benefits compared to immediate ones. This type of decision-making can be detrimental to a young firm, as it may sacrifice long-term success for short-term gains.

Meyer Works for a New Start-Up Technology Firm, Which Has