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An office manager is concerned with declining productivity. Despite the fact that she regularly monitors her clerical staff four times each day—atAM,AM,PM, and again atPM—office productivity has declinedpercent since she assumed the helm one year ago. Would you recommend that the office manager invest more time monitoring the productivity of her clerical staff? Explain.

Short Answer

Expert verified

I would not recommend that the manager spend more time supervising her employees, but she should rather change the way she supervises.

Step by step solution

01

Recommending the office manager

I would not recommend that the manager spend more time supervising her employees, but rather change the way she supervises. Throughout the year that she has been in office, she has established a routine in which at ,. she goes to supervise her staff.This routine makes it predictable and employees have incentives to not work or lower their productivity during hours when it is known for sure that she will not supervise.

02

Explanation

Since her supervising hours have become predictable, she needs to pull the trigger and change her strategy by monitoring at random hours and different numbers of times a day, which will make workers need to be working most of their time and thus increase their productivity since they will not know when the office manager will supervise.

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Most popular questions from this chapter

9. Use the following payoff matrix to answer the following questions.

Suppose this is a one-shot game:

a. Determine the dominant strategy for each player. If such strategies do not exist, explain why not.

b. Determine the secure strategy for each player. If such strategies do not exist, explain why not.

c. Determine the Nash equilibrium of this game. If such an equilibrium does not exist, explain why not

Use the following normal-form game to answer the questions below.

(a). Identify the one-shot Nash equilibrium.

(b). Suppose the players know this game will be repeated exactly three times. Can they achieve payoffs that are better than the one-shot Nash equilibrium? Explain.

(c). Suppose this game is infinitely repeated and the interest rate is 6 percent. Can the players achieve payoffs that are better than the one-shot Nash equilibrium? Explain.

(d). Suppose the players do not know exactly how many times this game will be repeated, but they do know that the probability the game will end after a given play is . If θis sufficiently low, can players earn more than they could in the one-shot Nash equilibrium?

Apply normal form and extensive form representations of games to formulate decisions in strategic environments that include pricing, advertising, coordination, bargaining, innovation, product quality, monitoring employees, and entry.

Coca-Cola and PepsiCo are the leading competitors in the market for cola products. In1960Coca-Cola introduced Sprite, which today is the worldwide leader in the lemon-lime soft drink market and ranks fourth among all soft drinks worldwide. Prior to1999, PepsiCo did not have a product that competed directly against Sprite and had to decide whether to introduce such a soft drink. By not introducing a lemon-lime soft drink, PepsiCo would continue to earn a200 \(million profits, and Coca-Cola would continue to earn a 300\)million profits. Suppose that by introducing a new lemon-lime soft drink, one of two possible strategies could be pursued: (1) PepsiCo could trigger a price war with Coca-Cola in both the lemon-lime and cola markets, or (2) Coca-Cola could acquiesce, and each firm maintains its current 50/50 split of the cola market and split the lemon-lime market30/70(PepsiCo/Coca-Cola). If PepsiCo introduced a lemon-lime soft drink and a price war resulted, both companies would earn profits of100 \(million. Alternatively, Coca-Cola and PepsiCo would earn \)275million and $227million, respectively, if PepsiCo introduced a lemon-lime soft drink and Coca-Cola acquiesced and split the markets as listed above. If you were a manager at PepsiCo, would you try to convince your colleagues that introducing the new soft drink is the most profitable strategy? Why or why not?

You manage a company that competes in an industry that is comprised of five equal-sized firms. A recent industry report indicates that a tariff on foreign imports would boost industry profits by \(30 million—and that it would only take \)5 million in expenditures on (legal) lobbying activities to induce Congress to implement such a tariff. Discuss your strategy for improving your company’s profits

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