Incentive formula approach to motivation revenue growth

Assignment Help Business Management

Reference no: EM1347637

Valley Commercial Bank wants to reward its branch bank managers for exceeding revenue growth targets and is considering alternative incentive formulas that award bonuses as a percentage of salary for each percentage point that actual revenue growth exceeds the target as follow.

FORMULA PARAMETER ALTERNATIVE 1 ALTERNATIVE 2
Revenue growth target 5% 10%
Bonus percentage 4 percentage points 8 percentage points

Require:

a. What are the motivational advantages and disadvantages of each of the four incentive formulas?

b. What are the advantages and disadvantages of the incentive formula approach to motivation revenue growth.

Reference no: EM1347637

Questions Cloud

Why considering that it snows only once every ten years : Why considering that it snows only once every ten years where Joe lives, Joe's expectations are almost always perfectly accurate." Are Joe's expectations rational.

Voip beneficial to an organization : Conduct Internet search to locate case study which illustrates how VoIP was beneficial to the organization. Why did organization need a VoIP solution?

Performance measurement system : Discuss and explain the major payoffs from overhauling the performance measurement system?

What is the federal resources for public education : Fifty years later, the federal resources for public education shows approximately 10% of the public education budget.

Incentive formula approach to motivation revenue growth : What are the motivational advantages and disadvantages of each of the four incentive formulas and what are the advantages and disadvantages of the incentive formula approach to motivation revenue growth.

Fraudulent financial reporting schemes : Suppose your audit manager has hired you to train your peers on an audit team about fraudulent financial reporting plans. Discuss and explain any five fraudulent financial reporting plans to your peers.

Explain what is budgetary slack : Discuss the advantages and disadvantages of Job Order Costing. Be sure to include specific examples of the advantages/disadvantages that you discuss.

Prepare properties in ltl : Let a three bit binary counter. Prepare these properties in LTL. Create a model which satisfies the specification and both the above properties.

Importance of motivation : Why is it significant for today's organizational leaders to understand human motivation? Provide a rationale to support your view.

User Account

All Pages