What affect might our concern for the baby boomers/ Managerial Economics
A. Pay and Productivity
There is significant disagreement whether a dependable positive correlation (relationship) exists between incentive pay and individual employee productivity. There are many vocal supporters on both sides of the argument. Discuss the your beliefs on the topic. What causes you to come down on one side or the other on this issue? Are your conclusions based on data you or others have collected and analyzed, or on workplace observation, or your personal attitudes? If you have any, you may share examples of effective incentive programs (or ineffective incentive programs) as you participate in the evaluation of the topic.
B. Stock Options in Lieu of Pay Increases
Giving employees company stock or stock options in lieu of pay increases has been popular in many companies. The employees often are not allowed to sell their stock (or exercise their purchase option) for at least one year after receipt, and must forfeit the stock if they quit or are fired within a specified waiting period. Discuss the pros and cons of stock bonuses in lieu of cash bonuses from the perspective of:
a. the employee;
b. the firm;
c. the stockholder;
d. the economy (the Nation).
C. Mandatory Retirement
Your authors discuss the question of setting a mandatory retirement age, where permitted by law. (See pages 395-396). What is the logic of a firm setting and exercising the application of a mandatory retirement age? What are the pros and cons of the mandatory retirement practice from the perspective of the firm/organization, individual, economy, or Nation? How might your response change with time; i.e., as you age or as the discoveries, opportunities, and challenges of mankind continue to evolve? What affect might our concern for the baby boomers reaching retirement age, and the smallest number workers supporting the largest number of retirees drawing social security, have on our views regarding mandatory retirement. If the seniors are employed, they will be contributing to social security through their FICA payments.
