Under the zero-sum approach, rewards are distributed such that ________
A) rewards are equal and do not increase or decrease with changes in profit margins
B) rewards increase for all employees at an identical rate
C) any drop in profits reduces the pay of employees by an identical amount
D) amount allocated for rewards is variable
E) rewards increase for a group at the expense of loss for another group
E
Explanation: E) The zero-sum approach treats the amount allocated for rewards as fixed so any gain one person or group achieves has to come at the expense of another person or group.
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Typically, sales goals are slightly lower than sales forecasts.
Answer the following statement(s) true (T) or false (F)
Putin, a recent immigrant from Russia, was given a clothes iron for Christmas. The iron included warnings in several languages. In English, the warning was "Do not iron clothes while wearing them." However, the Russian translation (the only one Putin could understand) said "Please warm your clothes and hands with this iron." One cold morning, Putin put his hands on the iron and sustained severe burns. He sued the manufacturer on a product liability theory. What should be the result of Putin's lawsuit?
A. Putin should win because of a manufacturing defect. B. Putin should win because of design defect. C. Putin should win because of a warning defect. D. None of the above.