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h. Ben & lerry\'s Homemade, Inc, the Vermont based ice cream manufacturer is kno

ID: 3450696 • Letter: H

Question

h. Ben & lerry's Homemade, Inc, the Vermont based ice cream manufacturer is known for having a rule that the compensation for the highest paid employee could not be more than seven times the pay of the lowest paid employee. A. Applying Hofstede's model of cultural influence, which of the five dimensions is most closely related to this rule? Why? Is this the "norm" for a US based organization? Why do you think Ben & lerry's implemented this rule? 2. At an ice skating competition featuring 10 skaters, two judges rated each skater on a scale from 0-10 in increments of .5 points. They each gave one score per skater that considered both technical and artistic components. The scores were as follows Table 1. Scores for 10 skaters awarded by judge 1 and judge 2. Skaters 1 Judge 16.0 3.5 8.0 6.5 55 8.5 9. 60 75 4.5 Judge 25.0 45 7.0 5.5 6.0 8.5 8.5 5.0 60 .0 A. What was the average score across all skaters for each judge? 8. Which judge had more variability in scoring? C. If a skater's total score is an average of the two judges' scores, which skater won? D. Calculate the reliability of this scoring method. What type of reliability measure did you use and what does the result mean? Can we say the rating system in this case was a reliable measure of skater performance?

Explanation / Answer

1. The power distance index (PDI) of Hofstede’s model of cultural influence pertains most closely to the rule enforced by Ben & Jerry’s Homemade, Inc. The PDI serves as an indicator of the extent to which the less powerful members of organizations and institutions accept and expect unequal distribution of power. In this case, power is communicated by means of the compensation an employee receives for their work. By capping the upper limit of compensation earned by the highest paid employee, the organisation seems to be communicating a drive towards ensuring a fair distribution of power.

The higher the PDI, the greater is the belief that hierarchy is clearly established and executed in society. The United States has been observed to have moderate levels of PDI with respect to other countries and therefore this attempt by Ben & Jerry’s cannot be considered as a norm. Perhaps, the organisation was driven to attempt a more balanced distribution of power by adjusting the pay scale of the employees.

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