Loren Wants to Implement a New Compensation Plan in His

question 36

Essay

Loren wants to implement a new compensation plan in his growing pre-fabricated housing business. He has been using profit-sharing, but he did not see the productivity gains he was hoping for. Identify and explain individual-, unit-, and organization-focused compensation plan elements, and explain which method might be a good choice for Loren to use.

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Definitions:

Blocking Effect

A result showing that an animal learns nothing about a stimulus if the stimulus provides no new information.

Conditioning

A behavioral process whereby a response becomes more frequent or more predictable in a given environment as a result of reinforcement, with reinforcement typically being a stimulus or reward for a desired response.

Surprise

An emotional response to unexpected events or information, characterized by heightened interest and physiological arousal.

Conditioned Emotional Response

A type of learned response in which an emotional reaction is elicited by a previously neutral stimulus through conditioning.