Papa Bill's, a Local Pizza Chain, Instituted a New Compensation

question 107

Multiple Choice

Papa Bill's, a local pizza chain, instituted a new compensation policy to increase the on-time delivery of its pizzas. Drivers were paid an extra $1.00 for each on-time delivery, payable on the next pay period. However, a review of the policy showed that traffic tickets for reckless driving among delivery drivers had increased by 50% since the new policy was introduced. Which of the following best explains why this reward system did not perform as expected?

• A)The organization was unintentionally rewarding counterproductive behavior.
• B)Employees viewed the $1.00 incentive as an entitlement.
• C)The delay was too long between the performance and the reward.
• D)The organization placed too much emphasis on monetary rewards.
• E)The reward lacked an "appreciation effect."

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Definitions:

Economic Rent

Earnings in excess of the minimum required to keep a factor of production in its current use, often derived from unique advantages.

Demand For Land

The economic desire or need for land for various purposes such as agriculture, residential, commercial, or industrial developments.

Resource

An economic input used to produce goods and services, such as labor, capital, and natural resources.

Land

In economics, it refers to all natural resources used to produce goods and services, including agricultural and undeveloped land.