Management Is Considering Adopting a Bonus System to Increase Production

question 131

Multiple Choice

Management is considering adopting a bonus system to increase production. One suggestion is to pay a bonus on the highest 5 percent of production based on past experience. Past records indicate that, on the average, 4,000 units of a small assembly are produced during a week. The distribution of the weekly production is approximately normally distributed with a standard deviation of 60 units. If the bonus is paid on the upper 5 percent of production, the bonus will be paid on how many units or more?

• A) 6255
• B) 5120
• C) 3196
• D) 4099

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Definitions:

Negotiating Style

The manner or approach an individual uses to achieve agreement or compromise in discussions.

Agreement Form

A document outlining the conditions and terms agreed upon by all involved parties.

Emotional Intelligence

The skill to recognize, govern, and articulate personal emotions while managing interactions with others in a considerate and sympathetic manner.

Cross Cultural Negotiations

The process of discussing terms and reaching an agreement or compromise involving parties from different cultures and often requiring sensitivity to cultural differences.