Question: Review Exhibit 9.3, which recommends a pay mix based on individual and corporate performance. What is the crucial suggestion for the following situations? Why do

Review Exhibit 9.3, which recommends a pay mix based on individual and corporate performance. What is the crucial suggestion for the following situations? Why do you think they suggested in such a way?

Suggested pay practice Why?
High variability in corporate performance
High unstable and unclear individual performance measure

What are the main ideas of the following theories? Also, how does this theory help managers to develop pay-for-performance plans (or implications)? Do not copy and paste from the textbook. Use your own words to answer the question.

Theory Main ideas Implication
Maslow's needs hierarchy
Herzberg's two-factor theory
Adams' equity theory
Vroom's expectancy theory
Reinforcement theory
Agency theory

Exhibit 9.5 shows various components of a total rewards system. Considering the characteristics or nature of each component, how could you put those into three groups? [Refer to the Total Returns structure we reviewed earlier.]

Which component(s) for this group?
Group 1
Group 2
Group 3

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