Currently XYZ's Compensation System Is Such That Only Top Managers

question 25

Multiple Choice

Currently XYZ's compensation system is such that only top managers receive compensation based on the company's performance, while everybody else in the company receives a fixed salary. Moreover, top managers have full discretion over the launch of new products. Due to the failure of the last three products launched by XYZ, top managers are contemplating modifying the allocation of decision rights concerning new products. What changes would make more economic sense?

• A) Delegating decision rights down the ladder to those employees who are likely to have more specific knowledge, and leaving their current compensation scheme unchanged.
• B) Delegating decision rights down the ladder to those employees who are likely to have more specific knowledge, and changing their compensation by awarding them bonuses based on their performance.
• C) Leaving the allocation of decision rights unchanged, but changing the compensation of all the employees by awarding them bonuses based on their performance.
• D) Give themselves good bonuses and reduce benefits for all employees.

Describe the principles of evolutionary relationships and lineage divergence.

Explain the role of the molecular clock in estimating divergence times and evolutionary rates.

Interpret phylogenetic trees to infer evolutionary relationships and common ancestry.

Distinguish between monophyletic, polyphyletic, and paraphyletic groups.

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Definitions:

Representativeness Bias

A cognitive bias where individuals incorrectly assess the probability of an event based on similarities to existing prototypes in their mind, rather than on actual evidence.

Availability Bias

A cognitive bias where individuals overestimate the importance of information that is readily available to them.

Adjustment Bias

A cognitive bias that affects the decision-making process, leading individuals to make decisions based on adjustments from a reference point.

Lack-of-participation Error

Describes a situation where the absence of employee involvement in decision-making leads to decreased morale, motivation, and potentially suboptimal outcomes.