The use of market control mechanisms has been criticized by those who believe that
A)they rely too heavily on rules and procedures.
B)economic measures do not adequately reflect the complete value of an organization.
C)they are too dependent on the organizational culture.
D)economic measures are the only reflection of the complete value of an organization.
E)decision making and power are too centralized when they are in use.

Question

Quizplus · Accepted Answer

Critics of market control mechanisms argue that economic measures such as profits, sales, or share prices do not capture the full value of an organization, including factors such as social, environmental, or ethical considerations. They argue that relying solely on economic measures can result in short-termism, unethical behavior or decision making, or neglect of long-term sustainability. Therefore, they call for a broader perspective on organizational performance that includes non-economic indicators and stakeholder interests. The other options are either incorrect or only partially correct. For instance, market control mechanisms can be flexible and adaptable to changing circumstances rather than rigid rules and procedures. Organizational culture can influence the use of market control mechanisms, but it is not necessarily a drawback if it aligns with the strategy and goals. Centralization of decision making and power can be a limitation of any control mechanism, not just market-based ones.

The Use of Market Control Mechanisms Has Been Criticized by Those