In Today's Environment of Constant Change, Psychological Contracts Are Less

question 7

Multiple Choice

In today's environment of constant change, psychological contracts are less predictable.For example, organisations can no longer offer job security, resulting in employees feeling stressed, anxious, and displaying counterproductive work behaviours.This is evidence that organisations are placing less strategic value on which contract?

• A) the reward contract
• B) the relational contract
• C) the transactional contract
• D) the ideologically infused contract

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Definitions:

Operating Leverage

The degree to which a company can increase its profits by increasing sales, highlighting the fixed versus variable costs structure.

Base-Case Scenario

In financial modeling and decision making, it refers to the standard set of assumptions used as a baseline for projecting the financial performance or outcome of a project.

Operating Leverage

A measure of how revenue growth translates into growth in operating income, indicating the percentage of fixed versus variable costs that a company has.

Marginal Tax Rate

The marginal tax rate is the rate at which an additional dollar of income is taxed, representing the fraction of the last dollar earned that is paid in taxes.