A production goal may be set too high by upper management because
A)they are unsure about the actual costs of production
B)they under-estimate the difficulty of meeting a goal
C)division managers over-state the difficulty of meeting the goal
D)all of the above

Question

​A production goal may be set too high by upper management because
A)​they are unsure about the actual costs of production
B)they under-estimate the difficulty of meeting a goal
C)division managers over-state the difficulty of meeting the goal
D)​all of the above

Quizplus · Accepted Answer

Upper management may set production goals too high because they underestimate the difficulty of meeting them, such as not fully understanding the production process or the capacity limitations. They may also do this to motivate employees to work harder, but it can have negative consequences such as stress and lower morale. It is unlikely that they would set goals too high due to uncertainty about the actual costs of production, as this would impact the overall profitability of the company. Division managers may overstate the difficulty of meeting a goal, but this is less likely to be the cause of an overly high production goal from upper management.

​A Production Goal May Be Set Too High by Upper

A Production Goal May Be Set Too High by Upper