Riahi-Belkaoui's research shows that U.S. firms, and possibly
firms elsewhere, resort to the underutilization of their resources,
a phenomenon known as organizational and budgetary slack. In this,
the first exhaustive study of slack, the author identifies and
explains the phenomenon and its causes, explicates the
characteristics of organizations afflicted by it, and suggests ways
to remedy it. In doing so, he also analyzes the role of the
multidivisional structure and the performance plan in the creation
of slack, and the distortion of information that accompanies it. A
challenging study for organizational behavior theorists and for
organization planners and top management in the private and public
sectors.
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