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A Company Was Experiencing Slow Production Rates, and Lower Production

question 164

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A company was experiencing slow production rates, and lower production volumes than demanded by management, so a new factory manager was hired. Upon investigation, she found that the workers were poorly motivated and not closely supervised. Midway through the quarter, she started an incentive program and paid out cash bonuses when workers hit their production targets. Within a short time, production output increased, but the bonuses had to be charged to the direct labor budget, and she was worried about the impact of these costs on operating income. This situation would have produced a(n) :

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Definitions:

Benjamin Rush

A Founding Father of the United States known for his many contributions to American medicine, politics, and education.

American Psychiatry

A medical specialty in the United States focusing on the diagnosis, treatment, and prevention of mental, emotional, and behavioral disorders.

Couples and Family Therapist

A mental health professional who specializes in treating emotional, mental, and behavioral issues within the context of couples or family relationships.

Family System

A concept in psychology and sociology referring to a family viewed as a complex, interdependent unit where changes in one part affect the whole system.

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