A manager at a firm wants to increase the effort put in by his team. Which of the following measures should he adopt?
A) He should increase the average size of the teams.
B) He should pay the workers fixed wages.
C) He should increase the workers' share in company profits.
D) He should centralize the firm's decision making process.
E) He should use aggregate performance measures to evaluate the workers.

Question

Quizplus · Accepted Answer

Increasing the workers' share in company profits provides an incentive for workers to put in more effort, as they will directly benefit from the success of the company. This is also supported by research in economics, which shows that profit sharing can increase effort and productivity. The other options, such as increasing team size, using fixed wages, centralizing decision making, and using aggregate performance measures, do not necessarily provide a direct incentive for workers to increase effort.

A Manager at a Firm Wants to Increase the Effort