store to a corporate-owned store. Answer: In my point of view the proposed system of Bachand seems to be more profitable for PK in contrast to the current franchise system. I would like to quote following reasons in favor of my conception: Incentive system: In the franchise system franchisee was to be had a definite salary of $50000 but he had full liberty to draw as large salary as he wants contingent to the growth of equity by means of profitable operations and diminishing of debt. So, PK
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psychological forces that determine the direction of a person’s behaviour in an organisation, a person’s level of effort, and a person’s level of persistence in the face of obstacles”. (Ezigbo, 2012, p 115) There are different types of motivational incentives which can either be financial or non-financial that can influence an individual or employees behaviour. According to Erbasi and
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link by investigate a group of Japanese companies and the result showed that companies with high pay-performance sensitivity did not get better performance. Gulen and Rau’s (2009) study on incentive pay also suggested that managerial compensation components such as restricted stock, options and long-term incentive payouts, that are meant to align managerial interests with shareholder value, do not necessarily translate into higher future performance. The reasons for this weak link may be quite complex
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copyright ensures that the patent holder is the primary benefactor of their creation. Industrial property covers patents for inventions, trademarks and industrial designs. Patents provide protection of ownership for inventors of products, which provide incentive for everyone to try and create products that are better and more efficient than their predecessors as they know that they can safely reap the rewards of their own success for themselves. Without this people would be much less encouraged to invent
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motors, now employees over 4000 people and sales have topped $1 billion. But, how did they gain this overwhelming prosperity? Many have tried to figure it out, even studies have been conducted on Lincoln Electric’s organizational structure, James’ incentive management practices, and the keys to their success, and still no one has mastered it. They still operate today the same way they did year’s ago and it is working...for them. However, what does the future hold for Lincoln Electric? Will they be
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channel, and an indirect channel consisting of distributors and different types of resellers. In 2009, Intermec’s revenues declined dramatically due to the global slowdown. Since Intermec’s competitors were offering discounts, allowances, and other incentives to promote their product, Intermec fell behind in the market. The CEO came up with six different options to regain their market share and increase their profits. After analyzing the six alternatives, as well as additional options, Intermec needs
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Freakonomics by Steven D. Levitt and Stephen J. Dubner focuses on our economy and the study of incentives. The two authors discuss comparisons that seem so foreign such as “What do school teachers and sumo wrestlers have in common?” and “How is the Ku Klux Klan like a group of real-estate agents?” Questions like these stir up the novel and essentially unravel the untold stories of life and consumption. Core economic principals are discovered within each story of the book. The title Freakonomics in
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time or several other. In this paper I will list three economic ideas associated to individual choices, present two cases of decision-making in which I shall compare the marginal benefits and the marginal costs related with the decision, show what incentives could guide to take a different path, and explain how the principles of economics affect decision-making, interaction, and the gear of the economy as an overall. Individual Decisions R. Glenn Hubbard and Anthony Patrick O’Brien (2010) teaches
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across various job categories within the firm. This dissatisfaction has been attributed to the overspecialization of some job functions in the company. The report attempts to assist DrainFlow improve in three key areas: job structure and design, incentive policies, and recruitment practices. It will go further to analyze the causes of the woes being faced by DrainFlow and provide a constructive recommendation on how to overcome them The main contents include an introduction to the problems DrainFlow
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experiencing incentive problems among its outlet managers. The managers are not working very hard and are letting quality deteriorate at their units. CEO, Bobby Jones, is considering a stock plan where each unit manager would be given 500 shares of stock in Bobby’s Burgers. He reasons that making the managers part owners of the company will motivate better service. (Brickley, Smith & Zimmerman, 2009, p. 466). By opening up stock options to Bobby’s Burgers managers, they are creating incentives to drive
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