Is a Certain Level of "Organizational Slack" Desirable in the Organization

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The Answer is The answer is yes.
Organizational slack or X-inefficiency is defined as the surplus costs that keep the firm from maximum efficiency operation.
By definition, the existence of organizational slack keeps the firm from operating at 100% of its potential maximum performance because some resources are not fully or efficiently employed.
A certain level of organizational slack can be justified by:
-the need to adapt to changes that require instantaneous variations in the available resources
-the time needed to prepare changes and to acquire resources and competences
-a role of testing new capabilities in an organizational "experimenting zone"
-the need to train new members of the organization.
However, the existence of this slack must be periodically reviewed to avoid the trap of wasting resources with an oversized organizational slack.
The right balance is not an easy objective to achieve.

Is a Certain Level of "Organizational Slack" Desirable in the Organization

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Is a Certain Level of "Organizational Slack" Desirable in the Organization

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Correct Answer:
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