Motivating employees by compensation plans

Assignment Help Managerial Economics
Reference no: EM1371800

A new manager recently was given an project to make two possible wage schemes for a design firm. The manager came up with the following packages: (1) Each employee will start at $15 per hour and will work eight hours per day; (2) each employee will receive $8 per hour and one-tenth of 1 percent of profits (expected profits are $80,000 per day if everyone puts out maximum effort). Which program will motiviate the employees more? Which program would you choose? Why?

Reference no: EM1371800

Questions Cloud

Effective cross cultural management : MNCs have business units in different geographic areas. This leads to interaction in different languages and cultures.
Compensation of fund managers : The Manager of your corporation pension fund is compensated based entirely on fund performance; he received over $1.2 million last year.
How prospectors get through mine shaft only fifteen minutes : How can all four prospectors get through mine shaft in only 15 minutes? After you have solved this problem, describe how you got your foot in door.
Substantially to pricing and product design : Dell Computer Corporation, the world's biggest personal computer maker, is keenly aware of everything its rival PC manufacturers decide to do.
Motivating employees by compensation plans : A new manager recently was given an project to make two possible wage schemes for a design firm. The manager came up with the following packages:
Create a program to draw image of archery target : Assume that you have been hired to produce a program which draws the image of the archery target-or, if you prefer commercial applications, a logo for national department store.
Manager compensation plan in car dealership : Two months before, the landlord of a car dealership significantly changed his sales manager's compensation plan. Under the old plan, the manager was paid a salary of $6000 every month
Types of maintenance : List and define three kind of maintenance and which is the most frequent form of maintenance - types of Maintenance
Marketing campaign by the champagne industry : Today's Friday night, and you are just about to leave your room to attend a party. However, a copy of New York Times catches your eye.

Reviews

Write a Review

Managerial Economics Questions & Answers

  Dynamics of cross functional teams

Discuss and explain the individual contributions that could be made through a cross-functional team to the following list of activities.

  Advantages and disadvantages of online, paper catalogs

Now that many businesses have upgraded to an online platform, are paper catalogs a thing of the last? Let's look at this from both sides of the table, both the customers and the manager.

  Question about reserve prices and extended warranties

A reserve value is a minimum value set by the auctioneer. If no bidder is willing to pay the reserve price, the item is unsold at a profit of $0 for the auctioneer.

  Marketing campaign by the champagne industry

Today's Friday night, and you are just about to leave your room to attend a party. However, a copy of New York Times catches your eye.

  What is the profit maximizing number of gizmo widgets

What is the profit maximizing number of Gizmo Widgets that should be introduced? Be sure to account for the fact that Gizmo Widgets displace other kinds of widgets. Again, be sure you provide a brief explanation of your approach/reasoning.

  Coordination of the activities of a business

The organization and coordination of the activities of a business in order to achieve defined objectives.

  Supply and demand in professional sports

Draw the individual cost curves on one graph: marginal cost, average total cost, average ?xed cost, and average variable cost. Place costs ($) on the y-axis and quantity (Q) on the x-axis.

  Prepare a marginal cost analysed income statement for 2014

Prepare a Marginal Cost Analysed Income Statement for 2014 from the above data to identify total and individual medical procedure contributions and profits.

  Draw the firms average and marginal cost curves

Draw the firm's average and marginal cost curves on the following diagram and the information in the following table relates to a firm's average and marginal costs of operating each of three plants (X, Y and Z). Each plant has a U-shaped average c..

  Estimate the coefficients of the demand model

Estimate the coefficients of the demand model for the data given above. Provide an economic interpretation for each of the coefficients in the estimated demand equation you have compuated.

  Linear programming problem

Linear programming is a mathematical technique used to determine the optimal solutions to certain specific problems.

  Managerial economics assignment

Carry out an analysis from the standpoint of both EMV and expected utility to establish Jeremiah’s best course of action, including a consideration of his bidding strategy with regard to the auction.

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