Managerial Economics Organizational Architecture, 7th Edition (James Brickley, Clifford W. Smith...

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Managerial Economics  Organizational Architecture, 7th Edition (James Brickley, Clifford W. Smith etc.) (z-lib.org) (1).pdf

Komalavalli · Accepted Answer

Incentive conflict is a difficulty that prohibits a person from doing something while others expect them . It is an issue that occurs in an organization when a leader decides to priorities his own interests over the interests of the organization. In this approach, incentive conflict diminishes the company's value. A bad employee reward system is an example of an incentive conflict that I have read about. Income is a vital component of employment and the greatest approach to recognize and reward employees for their outstanding contributions to the achievement of corporate goals. However, incentive conflicts develop when employees are not appropriately compensated. Employees who believe their pay is insufficient are discouraged from working in their company and instead focus on other activities that raise their income. In general, organizational performance suffers when individuals are not sufficiently motivated to continue putting in more effort and working for the benefit of the business.
Employers employ incentives to encourage a certain habit or performance that they feel is critical to the organization's success. For example, a software business may treat employees with lunch on Fridays to encourage collaboration across departments and functions. Lunch is also an excellent time to inform staff on the status of the firm outside of their allocated field. They also utilize lunch to educate employees with vital information or for employees to introduce themselves to colleagues about their hobbies and interests, allowing employees to get to know each other better.
Our organization's leaders do not want to go above and beyond their responsibilities,

Identify an incentive conflict in your firm, or one you have read about, that reduced firm value. As part of your answer, discuss whether or not one or more of the legs of the organizational stool was...

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