Technological change and patent protection

For many years, your firm has been protected by patents, Technological change and the introduction of new products have been slow. Soon, these conditions will change. Your patent protection is expiring, and the rate of technological change and innovation has increased substantially. Discuss how these changes are likely to affect your firm's optimal bundling of tasks into jobs and subunits.

The Good Beer Brewing Company currently purchases health insurance for its 10,000

The Good Beer Brewing Company currently purchases health insurance for its 10,000 employees. The company is considering a flexible plan where emloyees can have either $2,000 in cash or insurance coverage (the insurance costs $2000). The company figures it will expend the same amount of money either way. However, employees will be better off because they can choose the option that is most preferred. Do you see any potential problems with this idea?

Salesperson compensation

Two successful firms are observed with quite different compensation plans for their salespeople. One firm pays its salespeople on a commission basis, whereas the other firm pays its salespeople fixed salaries. Do you think that one of the two companies is making a mistake? What are the pros and cons of each approach?

Performance evaluation based on comparative rankings always reduces company value

The following quote is based on statements made by quality expert W. Edwards Deming: "If by bad management the components of a company become competitive, the system is destroyed.....A common example lies in the practice of ranking people, divisions, teams, comparing them, with reward at the top and punishment at the bottom. Jobs and salaries are based on comparisons. Teams naturally become competitive; divisions become competitive. Each tries to outdo the other in some competitive measure. The result is higher costs, battle of market share. Everybody loses." Do you agree with Deming that performance evaluation based on comparative rankings always reduces company value?

Risk Premium and Compensating Differential

How does the concept of "risk premium" in incentive compensation relate to the concept of a "compensating differential" in compensation policy?