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Jasmine Dimm Is a Call Centre Manager for Tostra, a Mobile

question 58

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Jasmine Dimm is a call centre manager for Tostra, a mobile phone company. Call centre operators at her call centre are responsible for answering calls from Tostra customers. Some calls are very short, relating to simple enquiries. However, a majority of calls tend to be longer, coming from irate customers complaining about Tostra's services. In these calls, customers are often very emotional and sometimes even abusive. Call operators have no control over what types of calls they get.
Jasmine has developed a new incentive system for her call centre staff. Under the new system, call centre operators are rewarded if they achieve two performance targets: (1) the duration of 90 per cent of the calls is less than 4 minutes and (2) 80 per cent of customers rate Tostra's 'customer service quality' as 'excellent'. Achieving these two monthly performance targets will result in a bonus worth 20 per cent of the call operator's monthly salary.
Based on expectancy theory, the major limitation(s) of Jasmine's reward system is:

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Definitions:

Rising Interest Rates

A situation in which the cost of borrowing money increases, often due to central bank policies.

Speculative Motive

The intent to hold cash for the purpose of taking advantage of future financial opportunities that may arise.

Opportunity Cost

The loss of potential gain from other alternatives when one particular alternative is chosen.

Rate Of Interest

The percentage of an amount of money which is charged for its use per period of time, often expressed annually.

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