Some Companies Try to Give Workers a Large Amount of Discretion

question 121

Short Answer

Some companies try to give workers a large amount of discretion so they feel empowered. At Morning Star Company, the world's largest tomato processor, the empowerment program includes all of the following features except
workers write up a mission statement which describes how they will contribute to the overall goals of the company.
employees are expected to propose the hiring of new people if they are overloaded or if they see a need that should be met.
each employee develops a "Colleague Letter of Understanding" with other employees who are affected by the person's work.
workers have the right to set their own salary.
at the end of the year, employees receive feedback on their performance from colleagues with whom they have a Letter of Understanding.

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Definitions:

Expense Equation

A formula used to calculate the total expenses by adding various costs and expenses associated with operating a business or managing personal finances.

Markup

The amount added to the cost price of goods to cover overhead and profit.

Wholesale Price

The cost at which goods are sold to retailers by the manufacturers or distributors, which is typically lower than the retail price.

Revenue

Revenue is the total amount of money received by a company for goods sold or services provided during a certain period of time.