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Chapter 16: Lauren’s Balancing Act

1. What do you see as two advantages and two disadvantages of the compensation incentive system that DeMarco’s is using for sales associates?

2. What impact do you think the compensation incentive system is having on the DeMarco’s corporate culture? Explain.

3. Do you think the complaints of lower-paid sales associates are legitimate? Why or why not?

4. How do you suggest Lauren respond to these complaints, such as the gripe that the system offers few opportunities for large commissions in some departments?

5. How could Lauren use vicarious learning to enhance employee motivation?

6. How does equity theory play a role in this case study? Explain.

Chapter 17: E-mail Adventure

1. What is the underlying communication mistake by Howard Tannenbaum in this case study? Why do you think Tannenbaum sent those e-mails?

2. How do you think Tannenbaum could have better communicated his concerns about the information link? Make two suggestions?

3. What should Tannenbaum do now to try to recover from the negative impact of his e-mails? Make two suggestions.

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