•CHAPTERS 14, 15, 16, and 17
Responses to essay questions should be a minimum of 350words each just to PASS, using the APA format. If you want a higher grade, deeper research and longer essays with quality analysis and conclusions are [url removed, login to view] or repeated use of improper formatting, misspelled words, and poor grammar. Remember that in each Module, you are to supply a minimum of five outside reference sources besides the textbook and the text (six in all).
Answer all questions following:
1. Discuss trade-offs between efficient risk bearing and incentives in compensation plans.
2. There has been an increased emphasis on compensating employees through incentive pay. High incentive pay, however, is not likely to be productive in all settings. Discuss the factors that are likely to favor paying high incentive pay to employees.
3. Describe the costs and benefits of the 360-degree Evaluation System and include a graphic (you create or find on the Internet) as part of your analysis and conclusions.
4. PROFESSIONAL DEVELOPMENT. Go to online business journals (e.g., Business Week, [url removed, login to view], Entrepreneur Magazine), and research CEO compensation. Do you think the fact that most American CEOs are paid so much more than rank-and-file employees suggests that CEOs are overpaid? How do they compare with Japanese or French CEOs? Supply a comparison chart of CEO pay. Are there reasons why overpaying CEOs might or might not be in shareholders' best interests?
CASE STUDY (minimum 700 words using current, outside/non-textbook references):
Internal Auditing in Law Firms. Chapter 17 dealt with divisional performance accounting. In this case, you are a new MBA hire and have been given this file to make a report concerning one of your company's clients, Jack Rabbit Law, Inc. You know that law firms are scared of adverse publicity from billing errors, and are turning to internal auditors to catch problems before others do. Jack Rabbit Law caught one error before the bills went out. In two, out-of-town trials, one client was almost billed $10,200 for a hotel in which its attorneys didn't stay. Before Jack Rabbit Law thought about hiring its own internal auditor, its former managing partner went to prison for cheating the firm and several clients of more than $836,000 which went unobserved. Some of the new internal auditors report to the head of the finance department. At other times, fearing a conflict of interest, they have their auditors report directly to the firm's executive director or to the firm's executive committee (e.g., like a Board of Directors). Jack Rabbit Law partners, however, are not sure of their own internal auditors at this point and the dual system in place. What can your firm--as an outside consultant looking after the law firm's interests, suggest or do to relieve their concerns? List the parameters that would need to be put in place along with your own solutions to stop billing errors from going out.
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