Scenario:
AlphaCo and BetaCo are both mid-sized pharmaceutical companies that employ over a thousand workers. The highest paid employees at each company are the executives and the senior level researchers.
This year, both companies have a raise pool of $5,000,000 - that is, each can raise the total compensation paid to all of its workers by a total of five million dollars.
AlphaCo uses $3,500,000 of its raise pool to increase pay for executives and researchers. Most of the other workers receive small raises, and some receive no raise at all.
BetaCo uses $3,500,000 of its raise pool to give everyone in the firm an equal 5% raise. Some key employees receive a raise of over 5%.
1. Which company will have employees who are, overall, more satisfied? Why?
2. Which company is likely to outperform the other over the next year? Why?

Question

01-07-2021
Business

Answered

IDNLearn.com: Your destination for reliable and timely answers to any question. Ask your questions and receive reliable, detailed answers from our dedicated community of experts.

Scenario:
AlphaCo and BetaCo are both mid-sized pharmaceutical companies that employ over a thousand workers. The highest paid employees at each company are the executives and the senior level researchers.
This year, both companies have a raise pool of $5,000,000 - that is, each can raise the total compensation paid to all of its workers by a total of five million dollars.
AlphaCo uses $3,500,000 of its raise pool to increase pay for executives and researchers. Most of the other workers receive small raises, and some receive no raise at all.
BetaCo uses $3,500,000 of its raise pool to give everyone in the firm an equal 5% raise. Some key employees receive a raise of over 5%.
1. Which company will have employees who are, overall, more satisfied? Why?
2. Which company is likely to outperform the other over the next year? Why?

Sagot :

We appreciate every question and answer you provide. Keep engaging and finding the best solutions. This community is the perfect place to learn and grow together. IDNLearn.com provides the best answers to your questions. Thank you for visiting, and come back soon for more helpful information.

Donna Has A $300 Loan Through The Bank She Is Charged A Simple Rate The Total Interest She Paid On The Loan Was $63 As A Percentage What Was The Annual Interest

Choose The Word That Best Completes Each Definition. A(n) Is An Emergency Medical Technician At A High Level Of Training And Expertise, Often Working From An

Donna Has A $300 Loan Through The Bank She Is Charged A Simple Rate The Total Interest She Paid On The Loan Was $63 As A Percentage What Was The Annual Interest

1. A) Sajina Deposited Rs 20,000 At The Rate Of 8% P.a. In Her Saving Account. After 2 Years, She Withdrew Rs 5,000 And The Total Interest Of 2 Years. How Long

Austin Wants To Look For Additional Evidence To Use As Support In His Essay On The Success Of The Colonies Without British Rule. What Is A Reputable source For

How Many Ounces Of Water Must Be Added 100 Oz. Of 60% Iodine To Produce A 55% Solution ? Round Your Answer To The Nearest Hundreth.

3 This Question Has Two Parts. First, Answer Part A. Then, Answer Part B. Part A Reread This Sentence From The Passage. We Worked Hard To Make Our Farm Profitab

29% Of A University's Freshman Class Are Majoring In Economics. If 2668 Students In the Freshman Class Are Economics Majors, How Many Students Are In The Freshm

You Need To Go On An Emergency Leave. Since You Are Working On A Critical Task, Your Manager seeks Your Credentials To Avoid Impact Of Services To The Client In

Dubey Companies Incorporated Reported The Following Accounts And Amounts (in Millions) In Its Financial Statements For The Year Ended November 30, 2018. Account

Parrainidn Parrainidn · Answer 1 · 2021-07-01T23:31:17-04:00

Answer:

BetaCo
BetaCo

Explanation:

BetaCo raised the salaries of everyone in the company meaning that even those who were not getting paid so much saw their salaries increase. Employees here will feel more appreciated as a result of this financial incentive as opposed to AlphaCo that neglected to cater for all its employees in an equal manner.

BetaCo will outperform AlphaCo over the next year all else equal because motivated employees tend to work harder for a company. In addition, BetaCo increased the salaries of key staff by more than 5%. Those key staff will work harder as a result of this incentive and push the company further than AlphaCo.

Sagot :

Other Questions