Employee Motivation, Incentives and Compensation Systems: seminar solutions

BEA2010 Managerial Accounting


Employee Motivation, Incentives and
Compensation Systems
Seminar




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Employee Motivation, Incentives and Compensation Systems -
Examples

Objectives
• Discuss examples to illustrate some of the theories and
concepts discussed during the lecture




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, Employee Motivation, Incentives and Compensation Systems -
Examples




Example 1

• Antoinette Kessel owns the Hotels Desfleurs chain of hotels

• Joseph Saint-Exupery manages the Hotels Desfleurs Vaison (HDV)
hotel




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Employee Motivation, Incentives and Compensation Systems -
Examples
Example 1
• Assume that Antoinette uses Residual Income to measure
performance

• What would Antoinette like Joseph to do to achieve good results as
measured by Residual Income for example?

• Antoinette is an entrepreneur and does not mind bearing risk. What
about Joseph?

• How can we insure Joseph against risk?




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