Management at Granger Industries is evaluating the company's distribution system to determine if cost-cutting measures will impact performance. Ralph, an employee with experience in annual cost-cutting negotiations, suggests the company consider synergies between elements of the distribution system instead of judging each activity on its own merits. What is Ralph trying to avoid with the cuts?
A) optimism bias
B) suboptimization
C) framing problem
D) horizontal conflict

Question

Quizplus · Accepted Answer

Ralph is trying to avoid suboptimization, which occurs when cost-cutting measures in one area negatively impact the overall performance of the distribution system, by suggesting the company consider the system as a whole.

Management at Granger Industries Is Evaluating the Company's Distribution System