With the Introduction of an Individual Incentive Program, Alexander Feels

question 48

Multiple Choice

With the introduction of an individual incentive program, Alexander feels like he is competing with the other members of his team instead of working together with them.While the individual incentive plan could mean more money for some members of the team, most members of the team feel the same way Alexander does.They wish they could go back to working together for a group incentive.Which disadvantage of individual incentives does this illustrate?

• A)Many jobs have no direct output
• B)May motivate undesirable employee behaviors
• C)Record-keeping burden is high
• D)May not fit organizational culture
• E)None of the above

---

Definitions:

Interest Rate Effect

The impact that changes in the interest rate have on consumer spending and investment due to the cost of borrowing money.

Real Wealth Effect

The change in consumption levels caused by a change in purchasing power, often due to inflation or deflation.

Aggregate Demand Curve

The Aggregate Demand Curve represents the total quantity of all goods and services demanded by the economy at different price levels.

Equilibrium Real National Output

The level of output where aggregate supply equals aggregate demand in an economy, adjusted for inflation.