1. Over the last 40 years CEO pay increased dramatically, and if you consider re
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Question
1. Over the last 40 years CEO pay increased dramatically, and if you consider recent events, it seems to be one of the more controversial topics of today. Much of this has been due to short-term and long-term bonuses and stock options. The overall compensation for the largest 365 companies CEOs has been more than $10 million. The ratio of CEO pay to the pay of the average employee has increased significantly over the past two decades - a single day of CEO pay equals the pay of the average worker for a whole year. Is CEO pay too high? Should the boards that control CEO pay change the way CEOs receive their pay so that they are more tightly connected to performance?
2. Merit plans are a very popular pay-for-performance plans. However, as discussed in your text beginning on page 410, there can be many problems associated with these plans. Expectancy theory says that motivation increases when rewards are directly linked to performance. Others say that merit increases need to be large enough to motivate employees to work harder. Discuss what you think are the major problems associated with merit pay plans. What has been your experience with merit pay plans? When do they work well?
3. Work teams have become a popular approach to job design in the U.S. Some have questioned whether teamwork is really feasible in various kinds of work environments given our individualistic culture. Since teams have become part of many organizations, then how should we give incentives to team or group members? Our chapter discusses team and group incentive plans. What do you think of these plans? Should everyone in the group or team receive the same incentive or bonus? Have you encountered the free rider problem in your group projects? Does giving different amounts of incentive to team members create problems when it is difficult to measure performance of the team members objectively?
Explanation / Answer
3.Team work become popular nowadays because it increases the efficiency, ability to find out creative ideas of same problem and give multiple support.
it increases the competition among the team members, due to this effectiveness of work increases. It increases loyalty toward organization and give higher level of jon satisfaction to employees.
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