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What is the meaning of suboptimal?

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Anonymous

13y ago
Updated: 3/8/2022

Suboptimization is a condition wherein subobjectives are conflicting or not directly aimed at accomplishing the overall organizational objective. Suboptimization is possible within the company whose hierarchy of objectives is depicted in Figure 6.6 if the first sub-objective for the finance and accounting department clashes with the second subobjective for the supervisors. This conflict would occur if supervisors needed new equipment to maintain production and the finance and accounting department couldn't approve the loan without the company's borrowing surpassing 50 percent of company assets. In such a situation, in which established subobjectives are aimed in different directions, a manager would have to choose which subobjective would better contribute to obtaining overall objectives and should therefore take precedence.

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Earl Herman

Lvl 10
3y ago

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