Final Exam essay questions
... two factors: (i). Hygiene Factors, {e.g. working conditions} and (ii). Motivation Factors, {e.g. recognition for job well done}. This theory supposes a two tiered analysis of why employee performance is reduced. If working conditions are poor, workers will be dissatisfied. However, improvement does not motivate, rather it simply reduces dissatisfaction. Thus, this theory incorporates a preventative tier that guards against dissatisfaction that can reduce performance. On the other hand, Motivation factors relate more towards producing satisfaction or no satisfaction; employees will become more motivated when they are given added responsibility, recognized for well done job, etc. This theory may well be used in almost every managerial relationship; and it is relatively easy to implement since every employer should strive to value their employees enough to recognize them and provide them good working conditions. d. Expectancy Theory: This theory rests upon the premise that people are motivated when they are provided with rewards for improved performance; provided they have a realistic chance of achieving the reward. This would seem to be relatively easy to implement in some work relationships, and more challenging in others. A basic example would be a sales commission type of job where an employee would receive a bonus if a certain sales figure is reached. In other aspects this may prove more difficult to implement. e. Equity Theory: This theory of motivation rests upon an employee’s evaluation of his treatment in comparison to others in the organization that are similarly situated. This theory disposes that when an employee feels inequitably treated they will naturally try to restore equity by lowering performance. Ideally, this may seem relatively easy to implement, however may be more difficult in actual practice. It would probably be useful to inform employees who may feel they are being inequitably treated why another person is receiving greater benefits than they are receiving. This would be a more pressing concern in those employment situations where many employees hold relatively the same job title. 2. Discuss the importance of wages and salaries, incentives, and benefit programs in attracting and keeping skilled workers. Salary/wages, benefits and incentive programs represent the most powerful and important aspects of a compensation system that is necessary to retain and attract quality employees. Of course, the right combination of compensation elements is complicated by the need to make employees feel valued while holding down company costs. Salary/Wages. In dealing with wages, employers run the risk of losing their valued employees if the wages they provide is less than what their rivals are willing to pay. Incentives: Studies show that an increased monetary benefit only increases performance when the compensation is directly linked to employee performance; thus, employers have developed several different methods of incentive initiatives that foster increased efficiency which include: a. Individual Incentives: This includes employee bonuses, merit salary systems, stock options, and variable pay schedules, (i.e. pay based on producing exceptional earnings). b. Companywide Incentives: This includes programs that apply to all employees within a particular firm, such as profit sharing programs, gainsharing plans and pay for knowledge plans. Benefit Programs: This aspect of the employee compensation system includes various types of insurance such as worker’s compensation, health, life, and disability insurance. It also includes payroll deductions for discounted stock plans, paid time off, retirement plans, and sometimes cafeteria benefit plans, (i.e. plans that allow the employee a choice of which benefits to choose). A well rounded compensation system containing the right combination of the above will attract quality employees to the firm, and will reduce the amount of employee turnover that would otherwise result. Ultimately, a quality employee base will reduce costs and increase efficiency. 3. Describe the key factors that influence the consumer buying process. The consumer buying process follows a logical pattern where a consumer first recognizes a need or problem that needs resolution. This process is then followed by a search for information regarding the problem, followed by an evaluation of the alternatives available. Ultimately, this process leads to a purchase and a post-purchase evaluation. However, the key factors of consumer behavior that influence the consumer’s reception of information regarding the alternative alternatives available include the following factors: a. Psychological influences: These influences include the consumer’s: • individual motivations • perceptions • ability to learn • attitudes b. Personal influences: These influences include the consumer’s: • lifestyle • personality • economic status c. Social influences: These influences include the consumer’s reactions towards: • family • opinion leaders • friends • coworkers • professional associates d. Cultural influences: These influences include: • major cultural influences, (i.e. way of life embraced by large group of people) • subculture influences, (i.e. values of smaller groups of people, ethnic group influences) • social class, influences of groups of people who are categorized by their backgrounds, occupation, income.) While no set of criteria can fully appreciate the subtle nuances of a consumer’s buying process, these factors set forth a reasonable backdrop of the most pervasive factors that influence consumer’s buying behavior. Other factors that may come into play are those such as Brand Loyalty. 4. Identify the various pricing objectives that govern pricing decisions and describe the price setting tools used in making these decisions. The various objectives involved in price setting include: • Maximizing Profit • Establishing a Market Share A business owner has a variety...