Question

The reward system Bates uses to encourage employees to find ways to reduce costs is an example of a(n)

A) sustained distinctive competence.
B) informal management control.
C) formal reporting structure.
D) compensation policy.

Answer 1

The reward system used by Bates to encourage cost reduction by employees is a compensation policy, which is a formal management control system that aligns employee and organizational goals.

Step-by-step explanation:

The reward system Bates uses to encourage employees to find ways to reduce costs is an example of a compensation policy. This is because the system is designed to provide incentives for employees who are successful in their efforts to minimize expenses within the company. Compensation policies are part of a formal management control system, which aims to align the interests of employees with the goals of the organization, often involving financial rewards such as bonuses or raises to acknowledge their contribution.

The reward system Bates uses to encourage employees to find ways to reduce costs is an example of compensation policy. A compensation policy is a set of guidelines and practices implemented by an organization to determine how employees are rewarded for their work. In this case, Bates uses a rewards system to incentivize employees to reduce costs, which is directly related to their compensation.