Scenario 4.1
T&P Corporation is a transnational company with four distinct businesses, including a national music and video store chain, a rap music production company, a talent agency that represents several famous rap stars, and a digital video disc (DVD) production facility that makes and records music videos on DVDs.T&Pis in the process of acquiring another company, its major music store rival ReBop Records.Because its rap stars are so famous, T&Pcharges crazed fans a higher price for its music compact discs and DVD videos.The fans don't mind, as they often have the opportunity to meet the rap stars in person at various T&P music stores throughout the year.T&Phas a policy of promotion from within as well as a no-layoff policy, and all managers are required to rotate through each business before they can be promoted.
-Refer to Scenario 4.1.T&P's policies of no layoffs and promotion from within are likely to have the most positive effect on:
A) the company's foreign investments.
B) shareholders' dividend.
C) excessive absenteeism, due to the threat of being fired.
D) employees' psychological contracts with the company.
E) sales and revenue targets.

Question

Quizplus · Accepted Answer

T&P's policies of no layoffs and promotion from within are likely to positively affect employees' psychological contracts with the company. This means that employees are likely to feel more secure and valued within the company, which can increase job satisfaction, motivation, and commitment. This can lead to positive outcomes such as better employee retention, productivity, and customer service, which ultimately can lead to increased sales and revenue targets. The other options are not as directly related to T&P's policies and are less likely to be affected by them.

Scenario 4.1 T&P Corporation Is a Transnational Company with Four Distinct Businesses