How does incentive plan align employees incentives with

Assignment Help Microeconomics
Reference no: EM13393928

Part of a worker's pay on an automobile assembly line is based on the number of cars in a pay period that come off the worker's line and pass inspection. The remaining portion of the worker's pay is an hourly wage that is fixed and only depends on the number of hours the employee works.

How does this incentive plan align the employee's incentives with the firm's? Is the inspection necessary?

What would you recommend to management if they asked you if they should inspect each individual employee's work and pay based on the individual's work rather than whether the car passed the final inspection (that is, what are the benefits and costs of paying, for instance, the windshield installer for the number of correctly installed windshields).

What decision making ability should the worker have in order to maximize the effectiveness of the incentive plans?

Reference no: EM13393928

Questions Cloud

Compare and contrast the use of material requirements : write a 1400- to 1750-word paper in which you include the following differentiate at least two or three key elements
If the appropriate interest rate is 508 percent what is the : trigen corp. management will invest cash flows of 528382 286398 295100 818400 1239644 and 1617848 in research and
What should a company consider when attempting to develop a : 1.what should a company consider when attempting to develop a new product? can you think of some new products that have
Determine for each plan the earnings per share of common : three different plans for financing a 5000000 corporation are under consideration by its organizers. under each of the
How does incentive plan align employees incentives with : part of a workers pay on an automobile assembly line is based on the number of cars in a pay period that come off the
Determine the bond proceeds from january first 2014 was : determine the bond proceeds from january first 2014 was the bond issued at a premium or discount or at par value? if
Multidomestic companies pursue different strategies in each : 1.which of the following statements about the service sector of the american economy is
1 describe sources of conflict within an organization 2 : 6-8 slides power point with speaker notes 200 - 250 words per slide excluding title and reference slideleaders must
Analyze the following list of accountswhich of the : examine the following list of accountsinterest payableaccumulated depreciation equipmentalex kenzy drawingaccounts

Reviews

Write a Review

Microeconomics Questions & Answers

  John barks owns barks computer screens inc and wants to

john barks owns barks computer screens inc. and wants to identify the supply and demand for screens in his market. the

  In market for good y the income elasticity of demand is

average consumer incomes have decreased substantially due to poor economic conditions. in the market for good x the

  How would you determine which were important

What factors might these types of stores have in common behind their declines? How would you determine which were important and which were not?

  The level of income that is rather than assuming tx txo we

thinking about modifications in the model again go back to the original model again but add a marginal propensity to

  How did the simulation show the use of monetary policy

1 . Based on the game, how did the simulation show the use of monetary policy to control both unemployment and inflation? How do Federal Funds Rate affect unemployment and inflation based on your experience with the game?

  Explain how did the stock market crash

What is the explanation that has stood the test of time and analysis as the major cause of the Great Depression? a. The collapse of the U.S. banking system and contraction of the money supply was the major cause of the Great Depression. b. The stock..

  How to maximize the profit?

Assume a certain firm in a competitive market is producing Q = 1,000 units of output. At Q = 1,000, the firm's marginal cost equals $15 and its average total cost equals $11. The firm sells its output for $12 per unit.

  Microeconomic monopolya monopolist faces the following

microeconomic monopolya monopolist faces the following demand function for its product q 45 - 5p the fixed costs of

  Calculate total cost and average total costs

Calculate total cost and average total costs if demand is 450 per month and what happens to average total costs (ATC) when your production goes up from 250 to 450?

  What economic factors might account for industry differences

Coke and Pepsi have sustained their market dominance for more than a century. General Motors and Ford have been hard hit by competition. In one paragraph, explain what economic factors might account for these industry differences.

  Write the possible work disincentives created by

outline the possible work disincentives created by anti-poverty programs. is there a way to solve this problem without

  Vetpharm has historically produced and sold drugs

VetPharm has historically produced and sold drugs for animals; however, one of its products developed for animal use has recently been approved for a similar use in humans. Market research has revealed that that at the current per dose price, ..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd