In an organization,the interests of the top management is in conflict with that of the middle management.Which of the following theory is consistent with this situation?
A) Control theory
B) Agency theory
C) Attribution theory
D) Equity theory

Question

Quizplus · Accepted Answer

The agency theory explains that conflicts can arise between the interests of the principal (top management) and that of the agent (middle management) as they may have different goals and incentives. The agent may prioritize their own interests over that of the principal. Therefore, agency theory is consistent with this situation. Control theory focuses on how managers can ensure that employees follow established procedures and rules, Attribution theory deals with how people make judgments about the causes of behavior, and Equity theory focuses on perceptions of fairness in the distribution of rewards.

In an Organization,the Interests of the Top Management Is in Conflict