When a combination of an internal practitioner and an external ...

[joe]

When a combination of an internal practitioner and an external practitioner are used to implement the OD program, the primary responsibility for the change will be upon the external practitioner who likely has more expertise and experience with OD.
 
  Indicate whether the statement is true or false

Question 2

What is an agency problem?
 
  What will be an ideal response?

[smrerig]

Answer to Question 1

False

Answer to Question 2

An agency problem is a problem in determining managerial accountability that arises when delegating authority to managers. The average shareholder has no in-depth knowledge of a particular industry or how to run a company. They appoint experts in the industrymanagersto perform this work for them. As a result, shareholders are at an information disadvantage compared with top managers. It is very difficult for them to judge the effectiveness of a top-management team's actions when it can often only be judged over several years. Moreover the goals and interests of managers and shareholders may diverge. Managers may prefer to pursue courses of action that lead to short-term profits, or short-term control over the market, whereas shareholders might prefer actions that lead to long-term profitability such as increased efficiency and long-term innovation.