Question

1. What types of work behaviors did AIG intend to encourage through its retention bonus plan?
2. Which needs seem to be important to the employees of AIG’s Financial Products unit?
3. Using the model of the individual-organizational exchange relationship, explain the relationship that employees of AIG’s Financial Products unit believed they had with the company. How was this exchange relationship violated?
4. Which motivation theory do you think has the most relevance for understanding the responses of the Financial Product employees to the implementation and unraveling of the retention bonus plan? Explain the reasoning behind your answer.
5. The amount of compensation earned by executives––as well as by professional athletes and famous actors/actresses and musicians––often spark emotionally-charged debate. Do you believe the $1 million plus retention bonuses received by 73 employees of AIG’s Financial Products was excessive? Why or why not?
6. Do you think that the various decisions made by Kenneth Feinberg with respect to executive compensation at AIG were justified? Explain the reasoning behind your answer.


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  • CreatedSeptember 15, 2015
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