Choosing Between Incentive PlansBrogdon Is a Ski Instructor Looking for Employment

question 68

Essay

Choosing Between Incentive PlansBrogdon is a ski instructor looking for employment in the Oregon mountains.He has received full-time job offers from two ski lodges,and must choose between them.The two jobs seem equally attractive,so Brogdon wants to choose the lodge which will pay him the higher compensation.Running Elk Lodge offers a wage of $8.00 per hour for a 40 hour week,plus 30% of the fees paid by walk-on pupils desiring private lessons,plus 40% of fees from pupils who specifically request a private lesson from Brogdon.Blustery Ridge Lodge offers a wage of only $6.00 per hour,plus 25% of walk-on private fees,45% of request private fees,and 15% of the fees paid by walk-on groups.Both lodges charge skiers $50 for private lessons and $100 per 5-person group for group lessons.Brogdon's previous experience leads him to expect weekly volume of 15 walk-on privates,6 request privates,and 20 walk-on groups.Required: Which job should Brogdon accept? What factors should Brogdon consider in making his choice?

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Definitions:

Nonadaptive Organizational Cultures

Organizational environments that struggle to adjust to changes, potentially leading to stagnation or failure.

Risk-Reducing Management

Management practices aimed at identifying, analyzing, and taking proactive steps to minimize or eliminate risks to an organization's capital and earnings.

Leadership Initiatives

Programs or actions taken by individuals or organizations aimed at developing or enhancing leadership skills and qualities among employees or team members.

Internalize Values

The process by which individuals adopt and integrate the values, beliefs, and norms of a group or society as their own.