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If Financial Rewards Are a Vital Organizational Control Mechanism (Whether

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Essay

If financial rewards are a vital organizational control mechanism (whether in the form of salary,bonus,stock options or the like),why is paying people more seldom the most important factor in attracting and retaining human capital?


Definitions:

Internal Growth Rate

The maximum growth rate a firm can achieve without external financing, based on reinvestment of its own earnings.

Financial Planning

The process of estimating the capital required and determining its competition. It is the process of framing financial policies in relation to procurement, investment and administration of funds of an enterprise.

Financing

The process of supplying capital for company operations, acquisitions, or investments.

Desired Level of Growth

The desired level of growth is a target set by a business or organization for the expansion of its operations, sales, or market share over a specific period.

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