Question

If TerraLoc were to use a U-form organizational structure and the CEO decided to use budgets as a management control but wanted to make sure that the managers did not become too focused on the short term, the CEO should do all of the following except

A) use an open process in developing budgets.

B) determine budgets for her managers and allow them to focus only on meeting the budgets.

C) use both quantitative and qualitative evaluations of managers' performance.

D) make sure that the process used in developing budgets reflects the economic reality facing the firm's managers.

Answer

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