Marilyn Peck,the Manager of Human Resources Makes the Following Statement

question 321

Multiple Choice

Marilyn Peck,the manager of human resources makes the following statement: "Our new incentive system is the best way to encourage high performance out of each employee.It specifies the things that employees should do and the results that will lead to rewards." David Witt,a production manager,responds by saying: "You ignore a key issue: no matter what else is going on,employees will not be motivated if they do not feel that they are being treated fairly.Workers who feel that they are paid less than others for the same work will not feel that they are being treated fairly unless the organization provides persuasive justification.For example,Robin cannot possibly be motivated given that she is paid much less than Jonaki."
All the following are assumed by Peck's argument except

• A)employees can understand the new incentive system.
• B)employees can achieve the results specified by the new incentive system.
• C)employees who exhibit a similar level of effort will receive similar rewards.
• D)employees will perceive that the rewards offered by the new incentive system are worth the effort required to achieve the results that lead to those rewards.
• E)employees believe that the things that the new incentive system calls for them to do are likely to influence the outcomes that affect their rewards.

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Definitions:

Perpetual Inventory System

An inventory management system where updates to inventory records are made in real-time with each sale or purchase, providing a continuous record of inventory levels.

Discount Period

The timeframe during which a discount is offered for prompt payment on sales.

Merchandise Sold

The products that a retailer, wholesaler, or distributor has sold to customers during a specific period.

Gross Profit

The income left over for a company once it has covered the costs involved in manufacturing and selling its products, or in offering its services.