Management myopia occurs when managers
A)lack motivation to reach their performance targets and in turn find it difficult to motivate subordinates.
B)limit their focus to short-term profits at the expense of longer-term strategic obligations.
C)find themselves unable to rise beyond a certain level in the organizational hierarchy.
D)are promoted beyond their level of competence.
E)find it hard to progress within an organization due to corporate downsizing or paring of middle management layers.

Question

Quizplus · Accepted Answer

Because financial ratios usually are expressed in compressed time horizons (monthly, quarterly, or yearly), they often cause management myopia, which occurs when managers focus on short-term earnings and profits at the expense of their longer-term strategic obligations.

Management Myopia Occurs When Managers