Identify the benefits and possible shortcomings of this system.
What will be an ideal response?
? Benefits: A more predictable business outlook which does not sway dramatically
in line with market fluctuations, thus leading to a more stable organisational
environment; higher customer satisfaction; low levels of staff turnover; and high
levels of organisational commitment
? Drawbacks: The model is dependent on long-term growth; should the bank fail
there is a massive loss for all employees; employees who do not fully buy into
Handelsbanken’s proposition may choose to stay because the cost of leaving is
too high (continuance commitment) rather than through an affective commitment
to the organisation and its values; recruitment and selection procedures are
critical to identify those who are comfortable with this outlook; and managers
need to be able to deal effectively with performance and link development to
organisational values
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Differentiate between essential and non-essential activities
Over 25% of total employee compensation consists of fringe benefits
Indicate whether the statement is true or false.
When infrastructure is publicly owned, it is important to price usage to reflect
A) the cost of rebuild the infrastructure once it is fully depreciated. B) the incremental profit from the use of the infrastructure. C) the marginal impact on the cost to society. D) the market clearing price.
Which of the following statements is most accurate regarding appellate courts?
A) Appellate courts often hear new evidence and testimony. B) Appellate courts generally accept the factual findings of the trial court. C) Only the federal court system has appellate courts. D) Appellate courts hear only criminal cases.