Why Is It Unwise to Take Off the Pressure for Good

question 96

Essay

Why is it unwise to take off the pressure for good performance or play down the adverse consequences of shortfalls in performance as part of a company's motivational and reward scheme for promoting competent strategy execution?

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Definitions:

Consumption

The use of goods and services by households. It is a primary component of economic activity and a key indicator of economic health.

Dissaving

Dissaving occurs when expenditures exceed income, leading to a depletion of savings or the accumulation of debt.

APC

The abbreviation for Average Propensity to Consume, which is the fraction of income that is spent on consumption rather than saved.

Marginal Propensity

This term explains the tendency of an individual or household to spend an additional unit of currency. For example, the marginal propensity to consume indicates how much consumption will increase with an additional dollar earned.