A Bus Operator Runs the Business on a Narrow Profit

question 32

Multiple Choice

A bus operator runs the business on a narrow profit margin and the owner has considered the underlying principles of best practice reward systems.By identifying issues that employees value, they develop an innovative reward system that is specific to the business.They asked employees what non-financial factors they valued in their job and the list included new buses and preferred bus routes and shifts.The owner then chose from both intrinsic and extrinsic rewards to motivate employees and identified the rewards linked to desired performance levels.This is an example of:

• A) ineffective SHRM
• B) effective SHRM
• C) benchmarking
• D) HRM auditing

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Definitions:

Economic Profit

The financial difference between total inflow and aggregate outflow, covering both specific and unspecific costs.

Profit-Maximizing Price

The price at which a company can sell its product or service to achieve the highest possible profit.

Total Economic Profit

The distinction in monetary terms between what a company makes in total and what it spends, considering all direct and hidden costs.

Monopoly Firm

A company that is the sole provider of a product or service in a market, having significant control over pricing and market conditions.