If Managers Increase Employee Involvement in the Design of an Incentive

question 97

Multiple Choice

If managers increase employee involvement in the design of an incentive compensation system,which of the following will most likely occur?

• A) Employees will be more committed to the plan.
• B) Managers will spend more time in conflict resolution.
• C) Employees' intrinsic drives will be sharply reduced.
• D) Managers will be better able to evaluate performance.

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Definitions:

Circular-Flow Diagram

An illustrative depiction of the economy demonstrating the circulation of currency among markets, households, and companies.

Firms

Firms are business organizations engaged in industrial, commercial, or professional activities, aiming to generate profits.

Circular Flow Model

An economic model that depicts the continuous flow of money, goods, services, and factors of production between households and businesses in an economy.

Economy

An arrangement for creating, distributing, and using goods and services within a specified geographic region.