MAX Computers Manufactures Affordable Laptops and Desktops at Its Factory

question 30

Multiple Choice

MAX Computers manufactures affordable laptops and desktops at its factory in Arizona.MAX has experienced a moderate amount of financial success,but upper management wants the firm to grow at a faster rate and become a bigger player in the highly competitive computer market.The firm's greatest problems relate to its employees.Employee turnover is high-most employees at MAX leave within two years or less of being hired.In addition,the rate of productivity among employees is not as high as executives would like.The vice president of human resources is considering moving MAX towards a high-performance work system. Which of the following questions is most relevant to MAX's decision to move toward a high-performance work system?

• A) How would the implementation of self-managing work teams affect employee morale and work standards at MAX?
• B) How will qualitative performance measures address the needs of MAX employees in regard to the firm's benefits plan?
• C) What roles should line managers, staff managers, and HR managers at MAX play in performance appraisals?
• D) What case studies are available to compare the skills of MAX employees with workers in other industries?

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Definitions:

NPV

Net Present Value, a method used in capital budgeting to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and outflows.

Equivalent Annual Annuity

A financial concept used to evaluate the annual return of an investment over its lifetime, making it easier to compare the effectiveness of different investment opportunities.

Cost of Capital

The benchmark earnings rate a company must meet with its investments to maintain its price in the market and draw in backers.

Replacement Chain Method

A decision-making process for evaluating the cost-effectiveness of replacing an asset, considering the time span of replacements.