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.

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Definitions:

William James

An American philosopher and psychologist who is often referred to as the father of American psychology, known for his work in pragmatism and functionalism.

Clinical Psychology

A branch of psychology that focuses on diagnosing and treating mental, emotional, and behavioral disorders.

Doctorate

The highest level of academic degree, typically requiring advanced study and research in a specific field.

Critical-thinking Guidelines

Principles or strategies designed to promote the objective analysis and evaluation of an issue in order to form a judgment.