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

question 44

Multiple Choice

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.In this scenario, when employees do not receive rewards when their performance appraisals are not up to the mark is an example of _____.

• A) self-actualization
• B) extinction
• C) valence
• D) positive reinforcement
• E) ratio schedule

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Definitions:

Sole Proprietor

The single person at the head of a sole proprietorship.

Cooperatives

A business organization owned and operated by a group of individuals for their mutual benefit.

S Corporation

A special designation for a corporation that elects to be taxed as a pass-through entity, avoiding double taxation on the corporate income.

Franchisee

The seller of goods or services under a trade name or trademark in a franchise.