Elsa, a manager at a window factory, is considering implementing an extrinsic reward system for employees.

What is a key factor to consider when evaluating the potential effectiveness of extrinsic rewards?

The expense of implementing extrinsic rewards

The availability of external sources for administering rewards

The alignment of extrinsic rewards with individual preferences

The necessity of immediate reward delivery for performance

In the context of the managerial role as a negotiator, what are the typical scenarios in which managers engage in negotiations, and why are these negotiation skills important in their decision$-$making process?

Managers negotiate exclusively with employees regarding work assignments, making negotiations a minor aspect of their role, and one which is not critical for organizational decision making.

Managers engage in negotiations concerning budget allocations, labor agreements, and other formal dispute resolutions, which are critical for organizational decision making.

Managers negotiate primarily for personal benefits, such as salary increments, and these skills are essential for self$-$advancement.

Managers use negotiation skills mainly to maintain friendly relationships with colleagues and clients, making it a secondary aspect of their role.

Benjiro, a vice president, has experimented with participative pay decisions, involving employees in decisions about compensation and benefits.

What is a potential advantage and disadvantage of involving employees in pay raise decisions?

Advantage: Employee participation improves decision quality and fairness.

Disadvantage: It consumes more time and may introduce bias.

Advantage: Employee involvement leads to higher compensation costs.

Disadvantage: Employees have less confidence in decision fairness.

Advantage: Participative pay decisions reduce the time required for managers.

Disadvantage: It often results in biased decisions.