A Key Advantage of Incentive Plans Is That They Represent

question 11

True/False

A key advantage of incentive plans is that they represent variable costs that are linked to the realization of goals as opposed to a fixed cost such as salary that may be largely unrelated to True performance (i.e., output).

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Definitions:

Scientific Management Theory

A theory developed by Frederick Taylor, which suggests that productivity can be increased by applying scientific principles to management tasks and processes.

Argyris's Theory

A theory proposed by Chris Argyris that explores how organizational structures can influence individuals' behavior and development, emphasizing the importance of creating an environment where employees can easily express and apply their capabilities.

Principle of Specialization

The organizational principle suggesting that dividing tasks and responsibilities among individuals or groups boosts efficiency and expertise by allowing them to focus on specific facets of their work.

Theory Y

A management concept that assumes employees are self-motivated, seek responsibility, and are creative problem solvers.