Asked by Annika Hogstrom on Jul 02, 2024

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Evaluate the four popular reward systems used to motivate employees from the standpoint of their likely contribution to profitability in an organization.Be sure to clarify any assumptions that you make in developing your answer.

Reward Systems

Mechanisms or programs designed to motivate and compensate employees or participants by recognizing their achievements, contributions, or performance.

Profitability

The ability of a business to earn a profit, which is the surplus remaining after total costs are deducted from total revenue.

  • Gain an understanding of the features and merits of different compensation mechanisms, including flexible benefits programs and profit-sharing strategies.
  • Illustrate the connection between compensation mechanisms and the encouragement of employees, and their role in enhancing corporate profits.
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LH
Liz Henriette Jean-Jacques5 days ago
Final Answer :
Answers to this question may vary from relatively superficial to highly detailed.Better answers will clearly identify the advantages and disadvantages of each of the four reward systems to an organization (minimally integrating material from Table 7.3 and 7.4 of the text),and will integrate some of the decision criteria for choosing among alternative reward systems from Figure 7.3 in the text.Better answers will clearly articulate assumptions that allow meaningful conclusions to be drawn regarding the likely impact on profitability of each of the four reward systems.
A very simple framework for an answer is provided below,though this should be fleshed out significantly through critical thinking on the part of the student.