Which outcomes are associated with motivation diseconomies when a firm grows?

Which outcomes are associated with motivation diseconomies when a firm grows?

• A. Conflicts emerge, productivity falls, and low task ownership.
• B. Enhanced coordination and faster decision-making.
• C. Lower wage costs and improved morale.
• D. Higher product quality with larger teams.

Answer: (A)

When a firm grows, motivation can suffer because individuals often feel less connected to outcomes as controls tighten and informal rewards weaken. This leads to motivation diseconomies, where work becomes more about following rules than taking initiative. The result is conflicts over roles and scarce resources, a drop in productive effort as engagement wanes, and a weaker sense of ownership over tasks and results. That combination matches the described outcomes: conflicts emerge, productivity declines, and people feel less ownership of their work. Growth can also bring coordination benefits or efficiency improvements, but those signs point to different dynamics, not motivation problems.

When a firm grows, motivation can suffer because individuals often feel less connected to outcomes as controls tighten and informal rewards weaken. This leads to motivation diseconomies, where work becomes more about following rules than taking initiative. The result is conflicts over roles and scarce resources, a drop in productive effort as engagement wanes, and a weaker sense of ownership over tasks and results. That combination matches the described outcomes: conflicts emerge, productivity declines, and people feel less ownership of their work. Growth can also bring coordination benefits or efficiency improvements, but those signs point to different dynamics, not motivation problems.