Several Employees at a Product Distribution Company Came Up with Some

question 30

Multiple Choice

Several employees at a product distribution company came up with some efficiency improvement strategies and brought their ideas to the foreman. After the suggested strategies were implemented, the company saw a notable decrease in costs so the foreman rewarded the employees with a half-day off and a team outing. This example reflects the ________ approach to compensation.

• A)commission pay
• B)equity pay
• C)piece-rate pay
• D)employee stock option
• E)Scanlon plan

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Definitions:

Groupthink

A deterioration of mental efficiency, reality testing, and moral judgment in the interest of group solidarity; extreme form of consensus

Harmony

A state of agreement or concord, often used to describe peaceful and coherent relationships among individuals or elements within a whole.

Group Solidarity

The unity, cohesion, and sense of belonging among members of a group, often seen in shared goals or values.

Self-Oriented

Focused on oneself, often concerning personal interests, welfare, or benefit, possibly at the expense of others.