One of the Key Reasons for the Success of Walmart

question 20

True/False

One of the key reasons for the success of Walmart has been management's use of the company's sophisticated information system to control purchasing decisions.

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Definitions:

Pay for Knowledge

A compensation system where employees are paid based on the range and depth of their skills and knowledge, rather than strictly on their job position or seniority.

Performance Pay

Compensation model where employees are rewarded based on their job performance, including quality and efficiency, often used as an incentive to enhance productivity.

Compensation Mechanism

A system or method used to determine and distribute salary, benefits, and other forms of pay to employees in exchange for their work.

Economies of Scale

Cost advantages that enterprises obtain due to their scale of operation, with cost per unit of output generally decreasing with increasing scale.