Xanadu Industries Manufactures and Sells the Same Calipers as Utopia

question 39

Multiple Choice

Xanadu Industries manufactures and sells the same calipers as Utopia Industries. Employee wages account for thirty-five percent of the cost of manufacturing calipers at both Xanadu Industries and Utopia Industries. Xanadu Industries is seeking a competitive advantage over Utopia Industries. Richard, the manager put in charge of devising a strategy to meet this end, suggests lowering employee wages. This leads to a grave conflict between Richard and the labor union. Which of the following, if true, would suggest that the labor union will accept Richard's suggestion to lower the wages?

• A) As they make a large number of precision instruments, caliper manufacturers receive huge volume discounts on raw materials.
• B) Xanadu Industries has taken away twenty percent of Utopia Industries' business over the last year.
• C) Utopia Industries recently set up a new manufacturing facility in the vicinity.
• D) Many people who work for manufacturing plants live in areas in which the manufacturing plant is the only source of employment.
• E) Utopia Industries pays its employees, on average, ten percent more than does Xanadu Industries.

Recognize the impacts of reward and punishment on organizational behaviour and performance.

Describe the benefits and processes involved in mentoring relationships within organizations.

Analyze the effectiveness of different reward systems and their influence on cooperation and competition among employees.

Understand how performance management and appraisal systems contribute to organizational effectiveness.

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Definitions:

Internal Locus

A belief that one has control over one's life and outcomes through one's own efforts, abilities, and actions.

Volleyball

A team sport in which two teams of six players are separated by a net, with each team trying to score points by grounding a ball on the other team's court.

Teammates

Individuals who are part of the same team, working together towards a common goal.

Identical Twin

Genetic duplicates born from the same fertilized egg, sharing nearly all their DNA.