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Scenario 13.1 John Davis, the Human Resource Manager for a Chain of Chain

question 27

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Scenario 13.1
John Davis, the human resource manager for a chain of hotels, is trying to motivate the company's employees with an updated compensation plan.There are two groups of operating employees.Line employees are responsible for dealing directly with customers and their performance objectives are related to providing high-quality customer service.To do this, line personnel must undergo regular training to update their customer service skills.Operating managers are responsible for monitoring the activities of the line personnel and providing instructional/developmental support when needed.Currently, the line personnel are paid on an hourly basis while the operating managers are paid salaries on a monthly basis.If employees receive adequate performance appraisals, they can receive generous bonuses and pay raises.However, when performance evaluations are inadequate, employees do not receive any rewards.This method of appraisal is creating conflicts between the employees and the top management of the organization.John believes that his new plan to give employees shares of profit and stock on the basis of the results of performance evaluations will further motivate employees and managers.
-Refer to Scenario 13.1.The proposal of profit and stockawards for employees canmake everyone in the organization work toward the common organizational goals.In this scenario, which of the following provides a useful framework to deal with the conflict of interests between employees and owners?


Definitions:

Marginal Tax Rate

The percentage of tax applied to the final dollar of income, signifying the tax paid on any extra dollar earned.

Marginal Tax Rate

The rate at which the last dollar of a taxpayer's income is taxed, indicating the proportion of any additional income that will be taken in taxes.

Average Tax Rate

A calculation resulting from dividing an individual's or entity's total tax payments by their total taxable income, indicating the portion of income paid in taxes.

Federal Government

The national government of the United States, which governs at the country level, consisting of the legislative, executive, and judicial branches.

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