A Senior Executive in Your Organization Read an Older Organizational

question 53

Essay

A senior executive in your organization read an older organizational behaviour textbook, which concluded that there is little relationship between job satisfaction and job performance. The senior executive now believes that it is a waste of time and money to have 'happy workers'. Instead, the executive is recommending finding ways to improve productivity without any consideration for employee well-being (beyond legal requirements). The company president is concerned that the executive's information may convince other members of the management committee to take a similar harsh view. Provide three different arguments why companies should try to maintain a reasonable level of job satisfaction among employees in this organization.

Calculate contribution margin, contribution margin ratio, and its significance.

Analyze the impact of price changes on break-even points and profitability.

Interpret various types of cost behavior and its implications on cost-volume-profit analysis.

Calculate operating income under different sales scenarios.

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Definitions:

Depreciation

A structured approach to spreading out the cost of a solid asset over the period it is expected to be useful.

Variances

Differences between expected and actual performance in areas like budget, costs, and schedule in financial and project management.

Fixed Manufacturing Overhead

Costs associated with manufacturing that do not change regardless of the level of production, such as salaries of supervisors and rent for the factory.

Budgeted Activity

The level of operation or volume of work planned for a period, used in budgeting and planning processes.