Vega Corp's Corporate Income Has Declined to Unacceptable Levels

question 124

Essay

Vega Corp's 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:

Parallel Conversion

A method of implementing a new system where the old and new systems run simultaneously for a period of time to ensure the new system works correctly.

Old Systems

Outdated or legacy technology and processes that are still in use within an organization.

End-user Development

The practice of allowing end-users, who are not professional developers, to create or modify software applications.

IT Department

A division within an organization tasked with maintaining and implementing technology solutions.