Management Is Considering Adopting a Bonus System to Increase Production

question 131

Multiple Choice

Management is considering adopting a bonus system to increase production. One suggestion is to pay a bonus on the highest 5 percent of production based on past experience. Past records indicate that, on the average, 4,000 units of a small assembly are produced during a week. The distribution of the weekly production is approximately normally distributed with a standard deviation of 60 units. If the bonus is paid on the upper 5 percent of production, the bonus will be paid on how many units or more?

• A) 6255
• B) 5120
• C) 3196
• D) 4099

Learn about different types of questions and their strategic use in negotiation.

Identify strategies for managing unethical behavior or questionable tactics in negotiations.

Recognize the importance of personal rapport in negotiation and the advantages of face-to-face communication.

Understand the role and functions of third-party negotiators in conflict resolution.

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Definitions:

Employee Assistance Plans

Programs offered by employers to help employees deal with personal problems that might adversely affect their work performance, health, and well-being.

Referrals

The act of recommending someone for a job or professional service, often based on personal endorsement.

Expenses

Costs incurred by a business or individual in the process of earning revenue, including operational, administrative, and marketing costs, among others.

Compensation Strategy

An approach used by businesses to design and implement payment systems and benefits to employees.