As Part of His Company's Initiative to Create a High-Performance

question 54

Multiple Choice

As part of his company's initiative to create a high-performance work system, Cody, an HR manager, has been reorganizing work so that teams of employees will concentrate on coordinating their efforts to make sure customers are satisfied. The vice president of human resources has asked Cody to explain to a team of executives how this project will help the company's financial performance. What would be the most effective explanation for Cody to use?

• A) Getting employees focused on customer satisfaction should take their focus off compensation, lowering costs.
• B) Improving customer satisfaction should increase demand, leading to greater sales and profits.
• C) Satisfied customers should result in higher quality, which, in turn, will increase the degree of innovation.
• D) Customer satisfaction should lower employee absenteeism and turnover, which reduces costs and raises profits.
• E) Focusing on customer satisfaction will drive up productivity, which, in turn, drives up profits.

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Definitions:

Operating

The day-to-day activities or functions necessary for a business or organization to run effectively and efficiently.

Competitive Market

A market structure characterized by many buyers and sellers, free entry and exit, and a product for which there are many substitutes.

Profit

The financial gain obtained when the amount earned from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.

Good

A tangible product or commodity that satisfies human wants or needs.