Pollenti Company Has Just Merged with Another Industrial Firm Whose

question 27

True/False

Pollenti Company has just merged with another industrial firm whose business had been failing. Pollenti immediately conducted a thorough study of the new company's work processes, and produced a report including the data shown below:
• A new inspection process is recommended to minimize defective raw materials. It would cost $12,000 to implement.
• Shoddy business practices are resulting in excessive warranty costs $15,000 more than normal due mainly to material failure.
• Reengineering of the assembly line will increase productivity. It would cost $18,000 to implement.
• Inefficient workplace design is costing $5,000 in unnecessary rework costs.
• Estimated amount of lost profits due to dissatisfied customers who turn to the competition is $80,000.
Based on an analysis of costs and benefits, a quality improvement plan would not be recommended.

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Definitions:

Content Theories

Theories that explain why people have different needs at different times and how these needs motivate behavior, such as Maslow’s hierarchy of needs, Alderfer’s ERG theory, McClelland’s need theory, and Herzberg’s two-factor theory.

Process Theories

Theories that describe the cognitive processes through which needs are translated into behavior, such as equity theory, expectancy theory, and goal-setting theory.

Motivation

Motivation is the internal drive or external stimulus that prompts an individual to take action toward achieving a goal.

Practice Talks

Sessions or rehearsals where individuals present their work, speeches, or presentations in front of others to improve and refine their delivery.