the logic behind stock options as a motivational device is that when workers course hero

by Prof. Tristin Ratke 6 min read

How do commissions and stock options affect employees’ behavior?

May 30, 2019 · Question 42 0 out of 2 points The logic behind stock options as a motivational device is that when workers Selected Answer: start an investment plan, they are less likely to leave the firm. Correct Answer: are part-owners of the company, they will work harder.

What is the most well known theory of motivation?

Jan 30, 2021 · 5) The logic behind stock options as a motivational device is that when workers Answer are part-owners of the company, they will work harder. Explanation- This is because stok option plan increase the sense of ownership as employees becomes the stockholder. The financial performance of the company has direct impact on the market share valuatiation.

What is Urwick’s Theory Z?

b. students receive weighted grades during a semester, like: 20 of 25 points on a quiz worth 5% of the grade, and 10 of 15 on a quiz worth 3% of the grade. c. a college implements a system where 10% of the class will receive A, 20% will receive B, 70% will receive C, 20% will receive D …

What is a bull call spread in stock options?

Start studying CH 7, 8, 10, 12, 13. Learn vocabulary, terms, and more with flashcards, games, and other study tools.

Why are training costs higher?

Training costs are higher, but because of the specialized nature of tasks, they are learned more fully. b. The nature of the jobs leads to lower absenteeism. c. Staffing costs are lower because the repetitive nature of tasks makes skill requirements lower.

What is the most important component of a performance appraisal?

The performance appraisal meeting is the most important component of a performance appraisal. In the most effective performance appraisal meetings, criticism of the individual personality traits is very important. Quality expert Edward Deming advocates abolishing performance appraisals in the workplace.

How long does it take to become a Disney management trainee?

You are a Walt Disney Company management trainee. The first three months of your job you will be working in the restaurant and hospitality area. The next three months you will be in the merchandising area, followed by three months in lodging and finally, three months in park operations.

Who bought Harley-Davidson?

the American dream of freedom. In 1969, the American Machine and Foundry Company (AMF) purchased Harley-Davidson in a (n): acquisition. After AMF acquired Harley-Davidson, the brand became stale and no new models were released.

What are the four determinants of national advantage?

The four determinants of national advantage are factors of production; demand conditions; firm strategy, structure, and rivalry; and: related and supporting industries. Interactions among the four determinants of national advantage influence a firm's: choice of international business-level strategy.

What are the economic risks of international strategy?

One of the biggest economic risks of international strategy that can lead to the decrease in value of a firm's assets is: currency fluctuations . A semiconductor company has established a plant overseas in South Africa, where the power grid is somewhat unreliable. The plant has a continuous manufacturing process.

What is a large software company?

A large software company is in the process of acquiring a small tech startup that has built an app for developers to code websites on their smartphones. It is rumored that the software company has grossly overestimated the future growth as a result of the acquisition.

What is a juniors clothing store?

A popular juniors clothing store features young designers and has been very successful. To gain strategic competitiveness, the clothing store frequently acquires young social-media sensations' designs and brings their designs to life in the store.

When did Disney buy Pixar?

domestic economy. Disney bought Pixar in 2004 to extend and begin a new partnership in its renewed focus on animation. In the deal, Steve Jobs, the CEO of Pixar at the time, vowed to preserve the independent nature of Pixar. Since then, the two have put out hits such as Wall-E and Up.

What is Carter family?

A situation in which one party delegates decision-making responsibility to a second party for compensation. The Carter family has been the successful owner of a manufacturing company for over 50 years. The company has always performed better than expected and was projected to grow for years to come.

What happens if a stock trades above $50?

If the stock traded within the zone of $50 to $60, the trader would lose some of their money but not necessarily all of it. At the time of expiration, it is only possible to earn a profit if the stock rises or falls outside of the $50 to $60 zone.

What is a straddle option?

A straddle is a neutral options strategy that involves simultaneously buying both a put option and a call option for the underlying security with the same strike price and the same expiration date . A trader will profit from a long straddle when the price of the security rises or falls from the strike price by an amount more than the total cost ...

What does a straddle tell you about a stock?

A straddle can give a trader two significant clues about what the options market thinks about a stock. First is the volatility the market is expecting from the security. Second is the expected trading range of the stock by the expiration date.

How to determine cost of creating a straddle?

Putting Together a Straddle. To determine the cost of creating a straddle one must add the price of the put and the call together. For example, if a trader believes that a stock may rise or fall from its current price of $55 following earnings on March 1, they could create a straddle. The trader would look to purchase one put and one call at ...

What is a straddle strategy?

More broadly, straddle strategies in finance refer to two separate transactions which both involve the same underlying security, with the two component transactions offsetting one another. Investors tend to employ a straddle when they anticipate a significant move in a stock's price but are unsure about whether the price will move up or down.

What would happen if the stock fell to $48?

If the stock fell to $48, the calls would be worth $0, while the puts would be worth $7 at expiration. That would deliver a profit of $2 to the trader. However, if the stock went to $57, the calls would be worth $2, and the puts would be worth zero, giving the trader a loss of $3.

When does the $55 strike expire?

The trader would look to purchase one put and one call at the $55 strike with an expiration date of March 15. To determine the cost of creating the straddle, the trader would add the price of one March 15 $55 call and one March 15 $55 put.

How to motivate employees?

One of the contemporary approaches to motivating employees through job design is empowerment. The concept of empowerment extends the idea of autonomy. Empowerment may be defined as the removal of conditions that make a person powerless (Conger & Kanugo, 1988). The idea behind empowerment is that employees have the ability to make decisions and perform their jobs effectively if management removes certain barriers. Thus, instead of dictating roles, companies should create an environment where employees thrive, feel motivated, and have discretion to make decisions about the content and context of their jobs. Employees who feel empowered believe that their work is meaningful. They tend to feel that they are capable of performing their jobs effectively, have the ability to influence how the company operates, and can perform their jobs in any way they see fit, without close supervision and other interference. These liberties enable employees to feel powerful (Spreitzer, 1995; Thomas & Velthouse, 1990). In cases of very high levels of empowerment, employees decide what tasks to perform and how to perform them, in a sense managing themselves.

Why are standardized job performance methods important?

Therefore, standardized job performance methods were an important element of scientific management techniques. Each job would be carefully planned in advance, and employees would be paid to perform the tasks in the way specified by management.

What are the components of a job?

Research shows that there are five job components that increase the motivating potential of a job: Skill variety, task identity, task significance, autonomy, and feedback. Finally, empowerment is a contemporary way of motivating employees through job design.

What is job specialization?

Job specialization is the earliest approach to job design, originally described by the work of Frederick Taylor. Job specialization is efficient but leads to boredom and monotony. Early alternatives to job specialization include job rotation, job enlargement, and job enrichment. Research shows that there are five job components that increase the motivating potential of a job: Skill variety, task identity, task significance, autonomy, and feedback. Finally, empowerment is a contemporary way of motivating employees through job design. These approaches increase worker motivation and have the potential to increase performance.

What is the job characteristics model?

The job characteristics model is one of the most influential attempts to design jobs with increased motivational properties (Hackman & Oldham, 1975). Proposed by Hackman and Oldham, the model describes five core job dimensions leading to three critical psychological states, resulting in work-related outcomes.

Why is it important to specialize in a job?

There are a number of advantages to job specialization. Breaking tasks into simple components and making them repetitive reduces the skill requirements of the jobs and decreases the effort and cost of staffing. Training times for simple, repetitive jobs tend to be shorter as well.

What are some alternatives to job specialization?

Ro tation, Job Enlargement, and Enrichment. One of the early alternatives to job specialization was job rotation. Job rotation involves moving employees from job to job at regular intervals. When employees periodically move to different jobs, the monotonous aspects of job specialization can be relieved.