ASQ Inc. must trim payroll expenditures or risk going out of business. Rather than engage in painful layoffs, senior managers at the company decided to implement a 10% pay cut to all employees. Selecting this option is an example of:
A) Satisficing
B) Optimizing
C) Delegating
D) Negotiating

Question

Quizplus · Accepted Answer

The decision to implement a 10% pay cut to all employees is an example of satisficing, which means settling for a solution that meets the minimum criteria rather than seeking the optimal solution. In this case, the senior managers at ASQ Inc. chose to implement a pay cut rather than layoff employees to reduce payroll expenditures, even though it may not be the best solution for the company in the long run.

ASQ Inc Must Trim Payroll Expenditures or Risk Going Out of of Business