What are the implications of designing pay for organizational performance?
What will be an ideal response?
Many organizations offer incentive pay tied to organizational performance measures. The expectation is that employees will focus on what is best for the organization. These organization-level incentives can motivate employees to align their activities with the organization's goals. At the same time, linking incentives to the organization's profits or stock price exposes employees to a high degree of risk. Profits and stock price can soar very high very fast, but they can also fall. The result is a great deal of uncertainty about the amount of incentive pay each employee will receive in each period. Therefore, these kinds of incentive pay are likely to be most effective in organizations that emphasize growth and innovation, which tend to need employees who thrive in a risk-taking environment.
You might also like to view...
Prepare a differential analysis to determine if the product should be processed further. Discuss the results.
A company spent $750,000 to produce 225,000 gallons of a chemical free cleaning product that can be sold for $6.00 per gallon. This product can be further processed into a household cleaning solution that can be sold for $8.50 per gallon. It will cost $360,000 to process the chemical free product into the household cleaning solution.
Typically service jobs are not well-paid positions and require little education
Indicate whether the statement is true or false
Quickbrush Paint Company makes a profit of $2 per gallon on its oil-base paint and $3 per gallon on its water-base paint. Both paints contain two ingredients, A and B
The oil-base paint contains 90 percent A and 10 percent B, whereas the water-base paint contains 30 percent A and 70 percent B. Quickbrush currently has 10,000 gallons of ingredient A and 5,000 gallons of ingredient B in inventory and cannot obtain more at this time. The company wishes to use linear programming to determine the appropriate mix of oil-base and water-base paint to produce to maximize its total profit. How much oil-based and water-based paint should the Quickbrush make?
Nestor wants to open a new event management company. Deveon, a multinational company, agrees to fund his business on the condition that Deveon be given 50% ownership in the company. In the given scenario, Deveon is most likely a(n) _____.
A. commercial lender B. sole proprietor C. venture capital firm D. angel investor