AdCon, an advertising company that designed pop-up ads for internet browsers, decided to implement a peer recognition program that allowed employees to award each other with points for creative ad ideas, and the points could be converted into gift certificates for local stores. A common problem with variable pay that seems likely to affect this program is:

Practical Management Science
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Chapter2: Introduction To Spreadsheet Modeling
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AdCon, an advertising company that designed pop-up ads for internet browsers, decided to implement a peer recognition program that allowed employees to award each other with points for creative ad ideas, and the points could be converted into gift certificates for local stores. A common problem with variable pay that seems likely to affect this program is:

a.

reduced cooperation among team members

b.

the high level of discrimination among peers

c.

lowered quality of final products

d.

differential opportunity for rewards

e.

the ineffectiveness of small increases

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