A Software Development Firm Has Witnessed Substantial Growth and Seeks

question 48

Multiple Choice

A software development firm has witnessed substantial growth and seeks to expand and reorganize its structure to meet the demands from clients in a better manner. HR has been given a clear directive that one of the major criteria for selection of recruits would be the candidate's ability to function as a team player. This is because the company is revamping all its major functions from the traditional departmental model to an arrangement of flexible teams. Joe Sanchez, one of the firm's oldest and most experienced employees, has demonstrated considerable ability in developing the best programs, but he prefers to work alone. The company does not wish to lose resources like Sanchez and others who lack the ability to work in groups, but teamwork is essential to its reorganization. Which of the following strategies will help rectify this problem?

• A) encouraging the formation of more diverse teams
• B) informing all employees that ability to work in teams will be a major determinant for promotions and bonuses
• C) increasing the size of teams so the contribution of people like Joe will not affect team performance overall
• D) applying merit-based compensation systems instead of gainsharing
• E) encouraging employees like Joe to work more independently

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Definitions:

Long-run Equilibrium

A state in which all firms in a market are earning zero economic profit, leading to no entry or exit from the market.

Identical Cost Curves

Cost curves that are exactly the same in shape and form, reflecting the same costs of production for different firms.

Industry Price

The general price level for goods and services within a specific industry, influenced by market conditions, production costs, and demand.

Long-run Equilibrium

A state in an economy or market where all factors of production and economic agents are fully adjusted to the conditions and thus remain stable over time.