Wednesday, March 3, 2010

MGMT 3430 Chapter 12

1.      Concept and Brief Description
In chapter 12 the authors discuses more on pay, specifically they discuss pay as recognition for employee contributions. I want to discuss incentive pay for executives. According to the authors executives have a greater affect on an organizations performance that that of the employees. I tend to slightly disagree on the idea that no matter what decision an executive makes it is up to the hourly employees to implement and follow these instructions. With that I feel that all employees have an effect on an organization it is just in different ways that affect may happen.  There are a couple of different way executives receive their incentives. There are short-term, and long-term.  Most of these are based on the overall performance of the company. Example is the stock is high the company is doing well this bonuses will be good. The biggest thing I can take from this is be honest lying and cheating have a way of coming back and ruining everything.
2.      Emotional Hook (provocative question/claim/real-life problem)
·         How can an organization structure incentive so there cans is fairness throughout the company?
·         How might you structure incentives if it were up to you?
3.      Key Points to Elicit in Discussion
·         As an executive there is great temptation to fib the numbers to get a better bonus.
·         Example are
o   WorldCom, Enron, Global Crossing, and so on.
4.      Facilitative Questions
·         How might a company stop a scandal from happening about incentives or pay?
·         What steps should companies be taking to ensure correct information is reported?

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