Case 10.1​ ​

question 61

Multiple Choice

Case 10.1​
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Antonio's company has an employee orientation program;has an extensive employee performance review program;and encourages managers to praise,write letters of appreciation for jobs well done,and take the time to listen to their employees.Years ago,the company began a positive reinforcement program.Managers were initially reluctant to support the program because they expected employees to begin demanding pay raises.But the company kept working at it,and eventually the program was accepted.Then,in order to increase quality and productivity,assembly-line workers were paid based on piecework for each acceptable component that they built.When the incentive programs were first introduced,employees competed with each other,teamwork was destroyed,and interpersonal relations dropped to an all-time low.Now the incentive programs and other positive reinforcement programs seem to be working.However,due to cutbacks in management levels and increasing work demands,managers are finding it harder and harder to determine which employees most deserve recognition.
-Refer to Case 10.1.Antonio's company's performance review program and encouragement of managers to express appreciation to employees is an example of​

• A) ​incentive programs.
• B) ​feedback and affirmation.
• C) ​common courtesy.
• D) ​Orloff's definition of energy.

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Definitions:

Marginal Cost

The change in total cost that arises when the quantity produced is incremented by one unit; essentially, the cost of producing one more unit of a good.

Product-Variety Externality

An economic effect where an individual's consumption choices can lead to an increase in the variety of products available, potentially benefiting other consumers.

Negative Externality

A cost that affects a party who did not choose to incur that cost, often associated with production or consumption activities.