In Trying to Gain Their Employees' Wholehearted Commitment to Good

question 40

Multiple Choice

In trying to gain their employees' wholehearted commitment to good strategy execution and operating excellence,managers are well advised to use all of the following incentives except

• A)adopting promotion-from-within policies and acting on suggestions from employees.
• B)creating a work atmosphere in which there is genuine caring and mutual respect among workers and between management and employees.
• C)giving awards and public recognition to high performers and showcasing company successes.
• D)providing attractive perks and fringe benefits.
• E)withholding information from employees about financial performance,strategy,and competitors' actions.

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Definitions:

Economic Profit

The difference between a firm's total revenue and its opportunity costs, including both explicit and implicit costs.

Savings Account

A deposit account held at a bank or financial institution that provides principal security and a modest interest rate.

Interest Rate

The percentage of a sum of money charged for its use, often expressed annually.

Economic Profits

The surplus gained by a firm when total revenue exceeds total costs, including both explicit and implicit costs, reflecting the financial advantage of a particular course of action.