A Manager Receives a Bonus Because the National Operating Subsidiary

question 26

True/False

A manager receives a bonus because the national operating subsidiary that she is in charge of exceeds its performance target. This is an example of an incentive.

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Definitions:

Bullwhip Effect

When errors in estimating the supply of human capital are amplified along the supply chain, resulting in large overestimates of hiring needs.

Human Capital

The collective skills, knowledge, or other intangible assets of individuals that can be used to create economic value.

Linear Programming

A complex mathematical procedure commonly used for project analysis in engineering and business applications; it can determine an optimum or best-supply mix solution to minimize costs or other constraints.

Probabilistic Programming

A programming paradigm concerned with the development of software and algorithms that reason and infer probabilities.