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:

Hasty Generalization

Drawing a broad conclusion from a small sample or isolated instances.

Accident Fallacy

Refers to a logical fallacy that involves applying a general rule to a specific case it does not apply to, often leading to erroneous conclusions.

Slippery Slope Argument

A logical fallacy that assumes a relatively small first step will lead to a chain of related events culminating in some significant effect, often negative.

Consequences

The results or outcomes that naturally follow from a person's actions or a set of circumstances.