Why Might an Employer Use an Incentive Scheme Rather Than

question 11

Multiple Choice

Why might an employer use an incentive scheme rather than attempt to measure worker productivity?

• A) Worker productivity can be determined by objective measures.
• B) It is inexpensive to determine worker productivity over time.
• C) Worker productivity is not based on effort.
• D) Worker productivity is subjective.
• E) Worker productivity is an example of hard information.

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Definitions:

Reciprocal Arrangements

Agreements between two or more parties where benefits, services, or goods are exchanged mutually to the advantage of all involved.

Organizational Buying Behavior

The decision-making process that organizations use to establish the need for products and services and identify, evaluate, and choose among alternative brands and suppliers.

Industrial Espionage

The act of illegally and clandestinely obtaining confidential business information about a competitor for a competitive advantage.

Derived Demand

This refers to the demand for a good or service that arises from the demand for another good or service.