n a bad economy, a CEO has a 4% chance of meeting earnings estimates at regular effort, and a 5% chance at extraordinary effort. Extraordinary effort costs the CEO $10,000. How large a bonus should the CEO be paid for meeting estimates to encourage extraordinary effort? Group of answer choices $10,000. $100,000. $200,000. 250,000 $1,000,000
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In a bad economy, a CEO has a 4% chance of meeting earnings estimates at regular effort, and a 5% chance at extraordinary effort. Extraordinary effort costs the CEO $10,000. How large a bonus should the CEO be paid for meeting estimates to encourage extraordinary effort?
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- . Joe runs the Service Department at a car dealership. The overall dealership has profit of $10 million on sales of $100 million and costs of $90 million. Joe’ s division contributed $9 million in sales and $7 million in costs. If the Service Department is evaluated as a profit center, what dollar amount is most relevant to Joe's compensation? Group of answer choices $2 million. $7 million. $9 million. $10 million. $100 million.Why might a “bonus cap” for executives be a bad policy for the company? Group of answer choices Executives shouldn’t be allowed to make more than a certain amount. Executives will have incentive to shirk before the cap is reached. Executive will have incentive to shirk after the cap is reached. It will have no impact on executive performance. Because caps will be set too high and executives will lose interest before reaching them.It is equally important for the designer of an incentive plan to think about how a bonus plan can help produce desired behaviors, and, to consider potential undesired behaviors that can maximize $$ available under the plan. O True False
- These are the vital components of expectancy theory except for which one? A. Performance-effort expectancy B. Value of Outcome C. Effort-performance expectancy D. Performance-outcome expectancy E. None of the aboveWhich of the following employee benefits has the greater value? (Assume a 25 percent tax rate.) A nontaxable pension contribution of $5,500 or the use of a company car with a taxable value of $7,430. A life insurance policy with a taxable value of $510 or a nontaxable increase in health insurance coverage valued at $370.-Answer Problem 17.5 (a, b, & c) at the end chapter 17. Show all the steps in your responses to each of the four questions. As always, clearly each response (e.g., 17.5 (a); 17.5 (b); 17.5 (c) and show all steps taken to arrive at the answers. 17.5 A manufacturer of disk drives for notebook computers wants an MTBF of at least 50,000 hours. Recent test results for 10 units were one failure at 10,000 hours, another at 25,000 hours, and two more at 45,000 hours. The remaining units were still running at 60,000 hours. Determine the following: (A)Percentage of failures (B)Number of failures per unit-hour of operating time (C)MTBF at this point in the testing
- Katie received an entry-level job offer from a clothing store. She feels the initial salary offer is too low. What is the first thing that she should do? O Request a 35% increase in salary. Agree to the salary and hope she will get a raise if she performs well. O Decline the job offer. O Research the starting salaries for this position in her geographic area.Assume you are working for a Human Resource Department in a leading apparel company in Sri Lanka. Your board of directors have instructed you to initiate a management trainee programme to hire 10 talented management undergraduates to the organization. Assume you have already advertised this opportunity and you have received 1000 applications. Based on the information above, draft a proposal for the board of directors on how you will be selecting 10 individuals from the pool of applicants and how you would do the induction process for them. Budget approved for these activities are Rs. 2 000 000.00 1) Induction ProgrammeClassify each statement as either true or false. A tournament compensation scheme is subject to ability risk. false Josephina receives the largest bonus because she had the highest sales last month. Jana had the second highest sales and receives the second largest bonus. This is an example of a tournament compensation scheme. tree Professors who grade on a curve are using a tournament compensation scheme. false Amwer Bank fale true
- When large-scale redundancies are announced, it is common practice for a firm to consult with employees’ representatives (usually, trade unions) to agree a rational basis on which to make the redundancies. Several sets of criteria are in common use: (1) FIFO (First In, First Out), is less frequently used but is often attractive where there are many long-standing employees at the top of their pay scale, hence their leaving will significantly ease the salary bill; (2) LIFO (Last in First Out) is often seen as fair in that those employees who have been with the company the least length of time have less personal stake in the company; (3) Measured Employee Performance is based on the view that the firm would prefer to keep the best workers; and (4) Commitment, often measured in terms of disciplinary record is also based on an argument that the organisation will try to keep people who will work well.1. Which of the above options is the most ethical choice, and why, Explain?A depressed employee's manager is having trouble with the said depressed employee. Although the employee if achieving her quotas, she is having difficulties submitting her reports and her manager feels like she is bringing down her entire team. Almost everyone in the company knows that the company has counseling services for its employees, but are reluctant to go. What should the manager do to address this issue? Should she push through with her initial plan of terminating the depressed employee?When large-scale redundancies are announced, it is common practice for a firm to consult with employees’ representatives (usually, trade unions) to agree a rational basis on which to make the redundancies. Several sets of criteria are in common use: (1) FIFO (First In, First Out), is less frequently used but is often attractive where there are many long-standing employees at the top of their pay scale, hence their leaving will significantly ease the salary bill; (2) LIFO (Last in First Out) is often seen as fair in that those employees who have been with the company the least length of time have less personal stake in the company; (3) Measured Employee Performance is based on the view that the firm would prefer to keep the best workers; and (4) Commitment, often measured in terms of disciplinary record is also based on an argument that the organisation will try to keep people who will work well.1. Which of the above options is the most ethical choice, and why?