A CEO of a major company has noted a serious decline in worker productivity within the last 3 years. According to a report completed by a consultant, productivity dropped by 35% during that time. The CEO has therefore initiated a
plan to boost productivity in which employees receive stock options in the company.Pre-thinking: How are stocks going to boost productivity?
A Studies indicate that owning part of something makes one work harder to make it successful.
Makes sense, owing a part (stock) makes one work harder for it's success (boost productivity)B Workers respond more to increases in salary than to the threat of being fired or demoted.
Stock is not equivalent to increase in salary. C The drop in worker productivity is due to the management policies of the current CEO and the Board of Directors.
We are not concerned for the cause of productivity loss but how stocks would fix itD The financial situation of the company is actually more grave than the issue of employee productivity.
This goes in the opposite direction. If finances are bad, even stocks won't help, as they may not be that valuableE The outside consultant hired to study the productivity of the company is often very accurate in her work.
The decline was already observed. The consultant just put a number to it. anyway, this doesn't help to analyse how stocks will help boost productivityBunuel
A CEO of a major company has noted a serious decline in worker productivity within the last 3 years. According to a report completed by a consultant, productivity dropped by 35% during that time. The CEO has therefore initiated a plan to boost productivity in which employees receive stock options in the company.
Which of the following, if true, would make the CEO's plan logically sound?
A Studies indicate that owning part of something makes one work harder to make it successful.
B Workers respond more to increases in salary than to the threat of being fired or demoted.
C The drop in worker productivity is due to the management policies of the current CEO and the Board of Directors.
D The financial situation of the company is actually more grave than the issue of employee productivity.
E The outside consultant hired to study the productivity of the company is often very accurate in her work.