R&D Storage Is a Small, but Diversified, Moving and Storage

question 49

Essay

R&D Storage is a small, but diversified, moving and storage company. In recent years, its corporate income has declined to unacceptable levels. To change the direction of the company, the board of directors hired a new chief executive officer. She is currently considering three alternative ways to reward division managers for performance. They are:
1. Give each manager a competitive salary with no bonus for performance.
2. Give each manager a base salary with the largest portion being a bonus based on performance, ROI being the yardstick.
3. Give each manager a base salary with a bonus based on comparative performance with the other divisions.
Required:
Evaluate each of the ideas, giving strengths and weaknesses.

---

Definitions:

Truth Table

A table used in logic to determine the truth values of logical expressions based on all the possible combinations of their constituents.

Atomic Sentences

Statements in logic that cannot be broken down into simpler components and assert a single fact.

Truth Values

The valuation in logic referring to the states of truth (typically true or false) that a logical statement can hold.

Truth Table

A logic table that helps in figuring out the results of logical expressions according to their given arguments.