A According to the organizers of the American Worker Project, David Madland and Karla Walter, whose goal is to conduct research on the increase of wages, benefits, and security of American workers – “the essence of labor unions is to allow workers to reap the benefits of the economic growth they help create.” i. In other words, as productivity increases, unionization helps workers negotiate higher wages, more benefits, longer vacations, and better work environments with their employers. ii. According to the 2008 Bureau of Labor Statistics, the average weekly earnings for a union member were $886, compared to $691 for non-union members. iii.
Owners put in their money to make a profit this is why it is important for them to track the sum of money they may have made in an accounting period. Usually a supervisor’s standing is related with the success of the company. When a business is making money the amount of money a manager makes will usually increase and they may also get a promotion. Income statements are also used to check the revenues and expenses of the company which allows managers to reduce their unnecessary expenses to make more profit. These income statements are also useful for outside users such as investors, creditors and the government.
Week 7 DQ 1 Executive Compensation In the base salary of executives, most receive variable pay, a compensation that fluctuates according to some level of performance. The use of compensation beyond base salary is intended to motivate executives to reach certain organizational performance goals, for example, specific profit levels, and reward them for reaching these goals. One very popular type of variable pay is the executive bonus, which is a one-time payment tied to some short-term performance goal. The bonus may be based on any number of performance outcomes, ranging from judgments of executive performance by the board of directors, to levels of company profits or market share. Nearly all executives now receive some sort of bonus as a part of their compensation package.
As the time horizon increases, variable costs rely less on existing factors and restrictions and therefore will begin behaving differently which will in turn affect the cost of production (Wright, 2007). The second way a firm that’s into profit maximization can decide its greatest level of output is by way of the marginal revenue -- marginal cost method. This is done by subtracting the marginal cost from the marginal revenue that a product generates. Using marginal cost and marginal revenue as the bases, profit maximization will be obtained at the point when marginal revenue is equal to marginal cost. If the marginal revenue is greater than marginal cost this would be when a profit maximizing firm would need to increase production until marginal revenue is equal to marginal cost.
Research has shown that incentive compensation programs are used to assist in the definition of goals to motivate employees to achieve the goals necessary (Santone, Sigler, & Britt, 1993). Because of this, performance incentives and profit sharing are two incentives that will be offered to employees to assist in their productivity. The profit sharing will include all employees and be based on a percentage of sales to be determined at a later date. Evidence shows that workers whose pay is somehow linked to profit
First, are informal rewards-interaction with others who are co-workers, superior and customers. Second, is profit sharing-gives employee a portion of the department’s or organization’s profits. Third, are skilled-based pay programs-compensating an employee according to the number and level of job-related skills they have mastered. Last, are flexible benefits-allowing employees to choose the benefits that are important to them (Hellriegel, & Slocum p. 213). Allstate could use informal rewards to motivate their employees by having employee of the month.
Profit maximisation is assumed to be the objective of a firm, however there are other objectives that firms have, these include: revenue maximisation and sales maximisation. A firm aiming to maximise profit will aim to operate at output level Q, where Marginal Revenue (MR) is equal to Marginal Cost (MC). A process that companies undergo to determine the best output and price levels in order to maximize its return. The company will usually adjust influential factors such as production costs, sale prices, and output levels as a way of reaching its profit goal. There are two main profit maximization methods used, and they are Marginal Cost-Marginal Revenue Method and Total Cost-Total Revenue Method.
• Did change occur? • Is the change due to training? • Is the change positive related to organizational goals? 3.________________ include everything in a work environment that enhances a worker’s sense of self-respect and esteem by others. • Social responsibilities • Nonfinancial rewards • Internal pay objectives • General business strategies
This is communicated down to the employees to set the standard for what is expected. Together, these functions can set the success level of a company. Culture and Behavior An organization is consciously coordinated social unit, composed of two or more people that functions on a relatively continuous basis to achieve a common goal or set of goals (Robbins & Judge, 2009, p. 6). Organizations can have several different purposes. Some are for profit and are in business to make money while others are non-profit and their primary focus is to meet a need.
Also, variations among culture influence values in five value dimensions: power distance, individualism versus collectivism, masculinity versus femininity, Uncertainty avoidance, and long-term versus short-term orientation. Based on an employee’s determination of these different value dimensions, the employer may reward differently to enhance motivation and maximize job satisfaction. For example, as an employer, he or she will reward cash bonus for a short-term oriented employee versus retirement package upgrade for long-term oriented