What Is the Most Important Idea for Managers to Remember

question 109

Multiple Choice

What is the most important idea for managers to remember from equity theory?

• A)Over-rewarded employees perform best.
• B)Under-rewarded employees perform best.
• C)For rewards to motivate employees,employees must perceive them as being fair.
• D)Employees must consider their inputs equal to the inputs of their "comparison other."
• E)Employees must consider their outcomes equal to the outcomes of their "comparison other."

Recognize the challenges economists face in conducting experiments.

Understand the importance of historical episodes in evaluating economic theories.

Grasp the concept of the circular-flow diagram and its implications for understanding economic activities.

Realize that economic models often omit details to highlight what is truly important.

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Definitions:

Operational Issues

Challenges or problems encountered in the day-to-day running of a business, affecting its efficiency and effectiveness.

Decentralization

The distribution of decision-making powers from central authority to subsidiary levels in an organization.

Advantage

A condition or circumstance that puts one in a favorable or superior position compared to competitors.

Franchisor

A company that grants the license to an individual or group to carry out and operate a business under its brand and trademark.