Describe how executives ensure themselves high compensation.
What will be an ideal response?
Agency theory incorporates the political motivations that are an inevitable part of the corporate world. Sometimes, CEOs make decisions that are not in the economic best interest of the firm and its shareholders. One variant on this view suggests that the normal behavior of a CEO is self-protective. CEOs will make decisions to solidify their positions and to maximize the rewards they personally receive. As evidence of this self-motivated behavior, consider the following description of how executives ensure themselves high compensation:
| • | If the CEO is truly underpaid: A compensation consultant is hired to survey actual |
| • | If the CEO is not underpaid and the company is doing well: A compensation consultant |
| • | If the CEO is not underpaid and the company is doing poorly: A compensation |
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Answer the following statements true (T) or false (F)
1. Text messages and documents transmitted over a computer network are called cyber-messages. 2. Project management software allows managers to plan and schedule the people, costs, and resources to complete a project on time. 3. A problem typically associated with interconnected databases on the Internet is the potential to overwhelm employees with too much information. 4. One advantage of e-business is that organizations and teams are no longer as bound by time zones and locations.
The standardization of parts was encouraged by ______.
A. Eli Whitney B. Frederick Taylor C. Adam Smith D. Henry Ford
When selecting the ______ conflict-handling style, individuals refuse to avoid sacrificing either their needs or the needs of their group members for the good of the group.
a. avoiding b. compromising c. integrating d. denying
List and discuss briefly the three standards of attainability