Question

Additional Case 11.1
The HR department at Sussex Enterprises has been asked to evaluate the effectiveness of the firm's team-based incentive plan. Managers at the firm report a decline in worker performance, an increase in interpersonal conflicts, and an increase in complaints about free riding team members. In addition, the manufacturing group has been accused of producing more units than the marketing group can sell. HR at Sussex needs to determine if the current incentive plan is appropriate or should be replaced.
Refer to Additional Case 11.1. Sussex executives have decided to change the firm's pay-for-performance plan to one that is plantwide. Which of the following characteristics of Sussex, if true, best supports this decision?
A) Sussex is a midsize firm in a stable product market.
B) Sussex is a large, global firm in a cyclical product market.
C) Most employee contributions at Sussex can be clearly isolated.
D) Sussex managers want to encourage innovation within work groups.

Answer

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