A Software Development Firm Has Witnessed Substantial Growth and Seeks

question 20

Multiple Choice

A software development firm has witnessed substantial growth and seeks to expand and reorganize its structure to meet the demands from clients in a better manner. HR has been given a clear directive that one of the major criteria for selection of recruits would be the candidate's ability to function as a team player. This is because the company is revamping all its major functions from the traditional departmental model to an arrangement of flexible teams. Joe Sanchez is one of their oldest and most experienced employees who demonstrated considerable ability in developing the best programs but the problem with him is that he prefers to work alone. The company does not wish to lose resources like him and others who lack the ability to work in groups but team work is essential in their reorganization. Which of the following strategies will help rectify this problem?

• A) applying merit-based compensation systems instead of gainsharing
• B) informing all employees that ability to work in teams will be major determinant for promotions and bonuses
• C) encouraging the formation of more diverse teams
• D) encouraging employees like Joe to work more independently
• E) increasing the size of teams so the contribution of people like Joe will not affect team performance overall

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Definitions:

Horizontal Analysis

A financial analysis technique that compares historical financial data across a series of periods to identify trends and changes.

Financial Statement Item

An individual line item or component that appears in a financial statement such as the balance sheet or income statement.

Common-size Statements

Financial statements that display line items as a percentage of a common base figure, facilitating comparisons across time periods or companies.

Comparative Financial Statement

Comparative financial statements present the financial position and results of operations for a business across multiple periods, allowing for analysis of trends and financial performance over time.