Performance Appraisal/Rewards at Oz Consolidated Oz Consolidated has a five-level performance appraisal system using a forced ranking distribution. Superior performers (the top 5 per cent) are rated 1, very good performers (the next 15 percent) are rated 2, good performers (the next 70 per cent) are rated 3, marginal performers (the next 5 per cent) are rated 4 and unsatisfactory performers (the bottom 5 percent) are rated 5. Employees rated 5 are given 3-6 months to improve their performance before they are considered for their termination. Merit pay increases are awarded only to those rated 1,2 or 3. Employees rated 4 and 5 are given only legally required pay increases. Promotions, bonus payments and stock options (granted only to those rated 1 or 2) are designed to foster a performance culture. Although meant to be confidential, employees quickly learn the ratings of other people in the organisation. Employees with a 1 rating are informally referred to as ‘superstars’, those with a 2 rating are called ‘stars’, employees rated 3 are called ‘workhorses’, those with a 4 rating are called ‘near misses’ and 5 ratings are referred to as ‘deadwood’. Problems can arise when a superstar is seen by their colleagues as belonging to another rating group. This causes envy among other workers and reluctance by them to communicate and cooperate with the superstar employee. The typical attitude is that if they are such ‘hotshots’, they don’t need my help. Likewise, a problem exists with a number of employees rated 3 because they regard their rating as really meaning that they are just average. As a result, they become demotivated, and the better ones (especially the borderline 2’s) frequently quit the company. A major source of contention also exists with those graded as ‘deadwood’. Some managers argue that a 5-rating resulting in termination is too harsh, implies that the employee can’t be ‘saved’, and does not sit well with an Australian egalitarian culture. Other managers argue that the system works properly by weeding out the non-performers and that by QUARTER 2 2020 Page 3 of 3 recognising, rewarding and motivating top performers it has allowed the company to prosper in a very competitive business environment. Another complication occurs with those rated marginal. A formal distinction is made in the performance appraisal record between employees who have been given a 4 rating because they are new or learning a job and those whose performance is rated ‘marginal’ because, (although trained and experienced), they do not meet the required performance standard. However, no such distinction exists in the minds of most workers. The result is that good employees become demotivated and refuse to move a new position (reducing their career development opportunities). Managers, as a consequence, face difficulties when trying to efficiently allocate their labour resources. The upshot of all this is that many managers claim that the forced distribution of employees (where mangers rank each employee from 1-5) creates too much ill feeling and should be abolished. Some mangers (especially the more politically powerful), frequently argue that their subordinates are all superior and therefore, are unfairly disadvantaged if restrictions are imposed on the numbers who can receive a superstar or star rating. Conversely, other managers object to rating employees in their department a 1 or 2 just to satisfy a theoretical distribution when they regard them as undeserving. All of this has created much discussion within the HR department about how to overcome the considerable dissatisfaction with the performance appraisal program present among the company’s managers and employees. Source: Stone,R.J (2017) – HRM

As a Manager at OZ Consolidated, discuss the ethical implications in the case and make five change recommendations. Use the Kohlberg’s scale to assess the level of morality

Using the AD-AS model show what will happen to the equilibrium level of output Y and the level of prices P if

a. There is an increase in oil prices.

b. The government raises taxes.

c. There is an increase in oil prices and the government increases spending to fight a recession.

Suppose thats=.4,δ=.3,gN=.03, and gA=.02. In the Solow Growth model westudied in class, the steady state growth rate of output (Y) is:

A. 0

B. 2%

C. 3%

d. 5%

2. “Pot producers heading down bankruptcy path: Insiders predict price slump, oversupply will spell doom for numerous companies” (Subramainiam, V., Vancouver Sun Newspaper, Thursday, January 02, 2020, p. C7). “Cannabis industry insiders are bracing for a slew of bankruptcies in the coming year as small and medium-sized companies low on cash struggle to raise funds in the downtrodden sector. ‘We have had a busy few years, but next year we’re going to be busy for a different reason – we expect a few million dollars in legal fees from insolvencies and consolidations,’ said Ranjee Dhillon, a partner at McCarthy Tetrault LLP and the firm’s cannabis group lead. i. In assignment 1, we found the Inverse Demand Curve to be: P = 14.6 – 0.40 [Qd]. Suppose that we also know that the Inverse Supply curve to be: P = 2.5 + 0.9444 [Qs] Given that at the equilibrium position, Qd = Qs, find the Market Equilibrium Quantity Exchanged, Qe and the Market Equilibrium Price, Pe. 3. Suppose that the Association for Fair Prices for Pot Producers, the FPPP, convince the government that the Pot Price should be set at a “FLOOR” of $12.50. i. At this Price Floor, determine each of the Quantity demanded, Qd and the Quantity supplied, Qs from the information provided in question 2 above. ii. Briefly explain whether or not this Price Floor is (1) Effective or Not Effective, and (2) Why or Why not? iii. Briefly explain the resulting Market condition as a result of this Price Floor in relation to the previous Market Equilibrium position determined in question 2 above. (1 Mark).

What role does the Borderlands have in defining Mexican-Americans to themselves and to the nation as a whole?

What are the primary differences between private trading exchanges and public trading exchanges in B2B e-commerce? What are the advantages of each type of exchange?

Chapter 2 – Marketing Ethics Marketing to children has always been controversial. Indeed, in the 1970’s, the FTC considered prohibiting all advertising to children. The federal government once again is setting its sights on marketing aimed at children. With the US child obesity rate and predicated to exceed 20% in just a few years, regulators are pressuring marketers in general, and food marketers in particular, to curb their marketing practices to children. In 2008, the FTC delivered an analysis to Congress of 44 companies’ $1.6 billion food and beverage marketing activities targeting children. A provision in the 2009 omnibus spending bill signed into law by President Obama created the Interagency Working Group on Food Marketing to Children. This group will present recommendations to Congress in 2010 regarding marketing to children and aged 17 and younger. With children and teens spending billions of their own dollars and influencing much more of their parents spending, this is an important market segment to marketers.

1. Studies report that children view more than 20 food ads each day, of which over 90% promote high fat, high sugar products. The marketing concept focuses on satisfying consumer’ needs and wants, but are marketers crossing the line when they cater to younger consumers’ wants for products that may counter parental wishes or that may be unhealthy?

2. What actions are marketers taking to market their products to this market segment more ethically? Discuss industry initiatives that help marketers market to children more responsibly.

Place the following into the above Strategy Portfolio Matrix for prior to COVID19 and again for during the COVID19 pandemic.

Office supplies, xray machines, personal protective equipment, laboratory supplies, food supplies and accessories, mobile devices (laptops, phones), ventillators, doctor and nurse surgical uniforms, repair parts for hospital air conditioning and heating systems, vending machine snacks and beverages, hospital beds, hospital room furnishings, needles/syringes/IV solutions, general drugs, hospitals consultants, auditors.

1. Case Study 1: Government Intervention

In Germany in 2009 there was considerable debate about the extent to which the government should be intervening in the economy. For example, its citizens were worried about the future of Opel, a German car brand that was part of the ailing General Motors. Some wanted the government to make sure jobs were saved no matter what. Others, however, were more hesitant and worried about becoming the government becoming too interventionist. Traditionally since the Second World War the German government has seen itself as a referee in market issues and has avoided trying to control parts of the economy. It would regulate anti-competitive behavior, for example, but not try to run many industries. However, in the recession of 2009 when the economy was shrinking the government was forced to spend more to stimulate demand and had to intervene heavily to save the banking sector from collapse. The government also had to offer aid to businesses to keep them alive.

Questions

1. What are the possible benefits of a government intervening in an economy?

3. What prompted greater intervention by the German government in 2009?

4. What would determine whether the German continued to intervene on this scale in

the future?

a) Explain how the Breon Woods System worked and how it differed from the Gold Standard. Then explain how it collapsed.

What are the impacts of COVID-19 on Trade Up/Bulk product sales for supermarkets?