How Does a Manager Motivate an Employee Who Lacks the Ability

question 21

Multiple Choice

How does a manager motivate an employee who lacks the ability to perform?

• A) Demonstrate that the employee is being paid fairly and adequately.
• B) Restructure the job so that the employee can handle it.
• C) Refer the employee to a counselor for stress management.
• D) Direct the employee's attention to the problem by withholding rewards.
• E) Link rewards to performance outcomes.

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Definitions:

Contribution Margin

The amount of revenue from sales that exceeds variable costs, indicating how much contributes to covering fixed costs and generating profit.

Fixed Expenses

Costs that remain constant for a given period regardless of the level of production or sales activity, such as rent and management salaries.

Break-Even

The point at which total costs and total revenues are equal, resulting in neither profit nor loss.

Margin of Safety

Margin of safety represents the difference between actual or projected sales and the break-even sales levels, measuring the buffer a company has before it incurs a loss.