Question 1
Need some help with Budget Assignment?,Assignment needs to be done in Excel spreadsheet. Thanks.,When do you think you'll finish this assignment?,It is 5:15pm, will you finish by 6:00pm?,when you done, send me file ASAP really need it by 5:00pm tomorrow. 25th.,I can't get your respond. please review the assignmet agein. I did attached answer from another tutor for similar assignment. Attachment for the Greenville below. I need the same structure for the Ten Pin. Inc. The December 31, 2007, balance sheet of Greenville, Inc. is presented below: Greenville, Inc. Balance sheet December 31, 2007 Cash $ 5,000 Accounts Payable* $ 5,000 Accounts Receivable 2,000 Bonds Payable 20,000 Raw Materials (500 x $8) 4,000 Total Liabilities 25,000 Finished Goods (1,000 x $14) 14,000 Common Stock 5,000 Fixed Assets 25,000 Retained Earnings 15,000 Accumulated Depreciation (5,000) Total SE 20,000 Total Assets $ 45,000 Total Liabilities & SE $ 45,000 *($4,000 from raw materials purchases and $1,000 from electricity) Other Information: Greenville anticipates sales of products to occur as follows: Units 2008 1st Half 1,200 2008 2nd Half 1,400 2009 1st Half 1,800 2009 2nd Half 1,200 One-half of sales are cash sales. The other one-half are credit sales, which are collected in the following period. All items are sold for $24 each. Production costs per unit are as follows: Raw Materials $ 8.00 Direct Labor 2.00 Variable Overhead 1.00 Fixed Overhead ($4,000/2,500) 1.60 Total Unit Cost $ 12.60 ? Variable overhead represents electricity. Electricity costs are paid in the period following their use. ? Fixed overhead represents deprecation of fixed assets. All depreciation is a factory cost. Greenville?s fixed assets have a remaining life of 5 years. Greenville has adopted the policy for finished goods that at the end of any period, one-half of the next period?s needs should be on hand. There are 1,000 units of inventory on hand January 1, 2008. Each unit of finished goods requires one unit of raw materials, which cost $8 per unit. Greenville had adopted the policy that at the end of any period, all of the raw materials needed for the next period should be on hand. There are 500 units of raw materials on hand January 1, 2008. Raw materials are purchased on account, and are paid for in the period following purchase. Each unit produced requires one-quarter of labor at $8 per hour. Labor costs are paid in the cash as incurred. Each unit produced requires $1 of electricity. Electricity is paid in the period following its use. Fixed overhead represents depreciation of fixed assets, and is incurred at the rate of $2,000 per period (one-half year). Greenville?s sales and administrative costs are paid in cash as incurred. Sales and administrative costs are $3,000 per period (one-half year) fixed, plus $2 per unit sold. Required: Prepare a master budget for Greenville, Inc. for 2008 (broken down in 6 month increments). The master budget should include the following components: 1. Sales budget 2. Production budget 3. Direct materials purchases budget 4. Direct labor budget 5. Overhead budget 6. Selling and administrative expenses budget 7. Ending finished goods inventory budget/Cost of goods sold budget 8. Cash budget 9. Pro forma income statement for the year ending December 31, 2008. [Income taxes of $4,000 are paid in cash in the second half of 2008.] 10. Pro forma balance sheet as of December 31, 2008. ? For its cash budget, Greenville has adopted a minimum cash balance of $2,000. If excess/deficiency of cash exists, Greenville can borrow or repay in increments of $1,000. Interest of 5% per period is paid in cash in the period following the borrowing. ? One-half of Greenville?s bonds payable are due in the first half of 2008. ? Greenville?s bonds require $300 of interest expense. The expense is paid during the second half of 2008.
Question 2
Chapter 7 1. In case studies, _____ are identified by the frequency with which the same term (or a synonym) arises in the narrative description. a. themes b. threats c. links d. ladders 2. In a focus group discussion, when the comments of one member triggers a stream of comments from the other participants, this is called: a. serendipity b. piggyback c. structure d. all of the above 3. The written set of guidelines that describes an outline of topics to be covered by a focus group moderator is called a: a. discussion guide b. TAT test c. concept test d. case study 4. Research that addresses research objectives through empirical assessments that involve numerical measurement and analysis approaches is called: a. quantitative research b. qualitative research c. extensive research d. grounded research 5. All of the following are situations that often call for qualitative research EXCEPT: a. when it is difficult to develop specific and actionable decision statements or research objectives b. when conclusive evidence is desired c. when researchers want to learn how consumers use a product in natural settings d. when a fresh approach to studying some problem is needed 6. A focus group moderator needs to be a good listener. (T/F) 7. The ideal size of a focus group is 20 to 25 people. (T/F) Exam 2 2 8. Laddering is an approach to probing, asking respondents to compare differences between brands at different levels that produces distinctions at different levels. (T/F) 9. The sentence completion method is a type of free-association technique. (T/F) 10. A primary advantage of the case study is that an entire organization or entity can be investigated in depth. (T/F) 11. A focus group typically involves a rigid question-and-answer session among participants. (T/F) 12. Studying cultures using methods that involve becoming highly active within that culture is called ethnography. (T/F) 13. Hermeneutics is an approach to understanding phenomenology that relies on analysis of texts in which a person tells a story about him- or herself. (T/F) 14. Stephanie was asked to look at a picture of a woman sitting on a deserted beach and to describe what was happening in the picture. She was then asked to tell what might happen next. Stephanie was participating in a(n): a. aptitude test b. focus interview c. thematic apperception test d. focus blog 15. Kodetra works at a large consumer-packaged goods company and is interpreting consumers? blog postings on the Internet, paying special attention to comments about her company. Which of the following best describes the type of research Kodetra is conducting? a. independent research b. dependent research c. quantitative research d. qualitative research Chapter 11 16. Hidden observation studies must be alert to situations in which the subject's right to privacy must be protected. (T/F) 17. Having observers record the brand names of items found in a kitchen pantry of a consumer panel is an example of what type of observation? a. physical actions b. verbal behavior c. physical objects d. pictorial records Exam 2 3 18. In observation studies, it is normally not necessary to ask a person who is being observed to state his or her gender, since that characteristic can be observed. (T/F) 19. John is measuring the amount of time it takes for people to make a choice between two options regarding what to select for lunch to infer the strength of their preferences for one alternative over the other. The recorded choice time is referred to as: a. response lag b. response interval c. response latency d. response bias 20. A source of error in observation studies is in the interpretation of the meaning of the observation data. (T/F) 21. All of the following are observable phenomena EXCEPT: a. attitudes b. verbal behavior c. spatial relations and locations d. neurological activity 22. Scanner data can observe supermarket sales in response to a local newspaper ad promotion. (T/F) 23. Using a stopwatch to determine the average waiting time for a customer at a drive-through location at McDonald's is an example of what type of observation? a. verbal behavior b. temporal pattern c. physical action d. physical objects 24. Direct observation is a straightforward attempt to observe and record what naturally occurs. (T/F) 25. When Walgreen?s uses cables across the road as "traffic counters" to determine the density of traffic near a possible retail store location, this is an example of what type of observation? a. contrived observation b. mechanical observation c. human observation d. content analysis 26. Response latency is the amount of time it takes to make a choice between two alternatives. (T/F) Exam 2 4 27. Clara is a researcher who records shoppers? movement through a grocery store. What method of research is Clara using? a. survey b. assessment c. immersion d. observation 28. Researchers can observe people or events with human observers or with machines. (T/F) Chapter 21 29. The opposite of the null hypothesis is called the _____ hypothesis. a. pure b. alpha c. alternative d. secondary 30. The values that lie exactly on the boundary of the region of rejection for hypothesis-testing are called the: a. degrees of freedom b. critical values c. significance level d. confidence interval 31. The error caused by rejecting the null hypothesis when it is, in fact, true is called a: a. Type II error b. confidence level error c. confidence interval error d. Type I error 32. Which type of error occurs when the researcher concludes a relationship exists when in fact one does not exist? a. Type I b. Type II c. Type A d. Type B 33. The two types of errors researcher run the risk of committing when sampling are: a. primary and secondary errors b. Type I and Type II errors c. critical and noncritical errors d. Type A and Type B errors Exam 2 5 34. When the probability of a Type II error is _____ , the probability of a Type I error is _____. a. reduced, increased b. reduced; reduced c. increased; increased d. none of the above 35. Failing to identify a hypothesized difference using a sample result when one really does exist in the population is which type of error? a. primary b. secondary c. Type I d. Type II 36. The number of observations minus the number of constraints or assumptions needed to calculate a statistical term is called: a. statistical power b. t-level c. degrees of freedom d. significance level 37. You have not made a mistake if the null hypothesis is false, and you decide to reject the null hypothesis. (T/F) 38. When sample size (n) is larger than _____, the t-distribution and Z-distribution are almost identical. a. 10 b. 20 c. 25 d. 30 39. The scale of measurement used by the researcher determines the allowable statistical techniques in the research study. (T/F) 40. The logic behind the chi-square test is to compare the observed frequencies with the expected frequencies in the data set. (T/F)
Question 3
1. Shin Company has a loan agreement that provides it with cash today, and the company must pay $25,000 4 years from today. Shin agrees to a 6% interest rate. The present value factor for 4 periods, 6% is 0.7921. What is the amount of cash that Shin Company receives today? 2. Hornet Corporation has a loan agreement that provides it with cash today, and the company must pay $25,000 one year from today, $15,000 two years from today, and $5,000 three years from today. Hornet agrees to pay 10% interest. The following are factors from a present value table: Period Interest Rate 10% 1 0.9091 2 0.8264 3 0.7513 What is the amount of cash that Hornet receives today? 3. On January 1, 2009, the Plimpton Corporation leased some equipment on a 2-year lease, paying $15,000 per year each December 31. The lease is considered to be an operating lease. Prepare the general journal entry to record the first lease payment on December 31, 2009. 4. Martin Corporation issued $3,000,000 of 8%, 20-year bonds payable at par value on January 1, 2009. Interest is payable each June 30 and December 31. (a) Prepare the general journal entry to record the issuance of the bonds on January 1, 2009. (b) Prepare the general journal entry to record the first interest payment on June 30, 2009. 5. A company paid $500,000 for 12% bonds with a par value of $500,000. The bonds pay 6% interest semiannually on September 1 and March 1. The company intends to hold the bonds until they mature. Prepare the journal entries for the following dates and transactions related to this bond acquisition. (1) Bonds purchased on September 1, 2009. (2) Year-end adjusting entry, December 31, 2009. (3) Receipt of semiannual interest March 1, 2010. (4) Redemption of the bonds at maturity on August 31, 2019. 6. On April 1 of the current year, a company paid $150,000 to purchase 7%, 10-year bonds that had a par value of $150,000 and paid interest semiannually on October 1 and April 1. The company intends to hold the bonds until they mature. Prepare the journal entry to record the receipt of the semiannual interest payment on April 1 of the following year. 7. A company reported net income for 2009 of $98,000 and $106,000 in 2010. It also reported net sales of $735,000 in 2009 and $798,000 in 2010. The company's average total assets in 2009 were $1,850,000 and $1,720,000 in 2010. Calculate this company's profit margin, total asset turnover, and return on total assets for 2009 and 2010. Comment on the results.,. On January 1, 2009, the Plimpton Corporation leased some equipment on a 2-year lease, paying $15,000 per year each December 31. The lease is considered to be an operating lease. Prepare the general journal entry to record the first lease payment on December 31, 2009.
Question 4
Rachel, Can you answer the questions below? I need them all answered. I keep getting an email to resubmit my question. If this can not be answered please advise. I want my money back. From my prior submission: "I was looking for help with these questions. They were listed on the site and I thougt the answeres were already uploaded on the site. If I could have the answers by 4 PM (CST). Would be great at the latest. "Use the following information for ECE Incorporated to answer questions 1 - 3: Assets $200 million Shareholder Equity $100 million Sales $300 million 1. If ECE's stock is currently trading at $24.00 and ECE has 25 million shares outstanding, then ECE's market-to-book ratio is closest to: a. .24 b. 4 c. 6 d. 30 2. If ECE's return on assets (ROA) is 12%, the ECE's net income is: a. $6 million b. $12 million c. $24 million d. $36 million 3. If ECE's net profit margin is 8%, then ECE's return on equity (ROE) is: a. 10% b. 12% c. 24% d. 30% 4. If Firm A and Firm B are in the same industry and use the same production method, and Firm A's asset turnover is higher than that of Firm B, then all else equal we can conclude: a. Firm A is more efficient than Firm b. Firm A has a lower dollar amount of assets than Firm B c. Firm A has higher sales than Firm B d. Firm A has a lower ROE than Firm B 5. If Moon Corporation's gross margin declined, which of the following is true? a. It's cost of goods sold increased. b. It's cost of goods sold as a percent of sales increased. c. Its sales increased d. Its net profit margin was unaffected by the decline. 6. Which of the following statements is false? a. The main components of net working capital are cash, inventory, receivables, and payables. b. The firm's cash cycle is the average length of time between when a firm originally purchases its inventory and when it receives the cash back from selling its product. c. Working capital includes the cash that is needed to run the firm on a day-to-day basis. It does not include excess cash, which is cash that is not required to run the business and can be invested at a market rate. d. If the firm pays cash for its inventory, the firm's operating cycle is identical to the firm's cash cycle. Please use the following information to answer questions 7 - 8. Reardon Metal (RM) had $120 million is sales in 2009. Its cost of goods sold was $85, and its average inventory balance was $15 million. 7. The average number of inventory days outstanding for Rearden is closest to: a. 6 days b. 8 days c. 37 days d. 64 days 8. The industry average days of inventory is 75 days. The amount that Rearden would have to increase/decrease its inventory in order to match the industry average is closest to: a. decrease inventory by 2.2 million b. increase inventory by 2.2 million c. increase inventory by 2.5 million d. increase inventory by 4.2 million 9. Rearden Metal needs to order a new blast furnace that will be delivered in one year. The $1,000,000 price for the blast furnace is due in one year when the new furnace is installed. The blast furnace manufacturer offers Rearden Metal a discount of $50,000 if they pay for the furnace now. If the interest rate is 7%, then the NPV of paying for the furnace now is closest to: a. ($15,421) b. $15,421 c. ($46,729) d. $46,729 10. Which of the following statements is false? a. The interest rates that banks offer on investments or charge on loans depends on the horizon of the investment or loan. b. The Federal Reserve determines very short-term interest rates through its influence on the federal funds rate. c. The interest rates that are quoted by banks and other financial institutions are nominal interest rates. d. Fundamentally, interest rates are determined by the Federal Reserve. 11. Suppose a ten-year bond with semiannual coupons has a price of $1,071.06 and a yield to maturity of 7%. This bond's coupon rate is closest to: a. 3.5% b. 6.0% c. 7.0% d. 8.0% Use the following information to answer questions 12-14 The Sisyphean Company has a bond outstanding with a face value of $1,000 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semiannually. 12. How much will each semiannual coupon payment be? a. $60 b. $40 c. $120 d. $80 13. Assuming the appropriate YTM on the Sisyphean bond is 7.5%, then the price that this bond trades for will be closest to: a. $1,045 b. $691 c. $1,000 d. $957 14. Assuming the appropriate YTM on the Sisyphean bond is 9%, then this bond will trade at a. A premium b. A discount c. Par d. Not enough information to determine 15. Which of the following statements is false? a. Prices of bonds with lower durations are more sensitive to interest rate changes b. When a bond is trading at a discount, the price increase between coupons will exceed the drop when a coupon is paid, so the bond's price will rise and its discount will decline as time passes. c. Coupon bonds may trade at a discount, at a premium, or at par. d. The sensitivity of a bond's price changes in interest rates is the bond's duration. 16. Which of the following is not a way a firm can increase its dividend? a. By increasing its retention rate b. By decreasing its shares outstanding c. By increasing its earnings (net income) d. By increasing its dividend payout rate Use the following to answer questions 17-19 Rearden Metals has a current stock price of $30 share, is expected to pay a dividend of $1.20 in one year, and its expected price right after paying that dividend is $33. 17. Rearden?s expected dividend yield is closest to: a. 3.40% b. 3.65% c. 4.00% d. 4.20% 18. Rearden?s expected capital gains yield is closest to: a. 4.0% b. 6.4% c. 8.2% d. 14.0% 19. NoGrowth Industries presently pays an annual dividend of $1.50 per share and it is expected that these dividend payments will continue indefinitely. If NoGrowth's equity cost of capital is 12%, then the value of a share of NoGrowth's stock is closest to: a. $10 b. $15 c. $14 d. $12.50 20. Von Bora Corporation (VBC) is expected to pay a $2.00 dividend at the end of this year. If you expect VBC's dividend to grow by 5% per year forever and VBC's equity cost of capital is 13%, then the value of a share of BBC stock is closest to: a. 25 b. $40 c. $15.40 d. $11.10 21. Which of the following statements is false? a. The total payout model allows us to ignore the firm's choice between dividends and share repurchases b. By repurchasing shares, the firm increases its share count, which decreases its earning and dividends on a per-share basis. c. The total payout model discounts the total payouts that the firm makes to shareholders, which is the total amount spent on both dividends and share repurchases d. In the dividend discount model we implicitly assume that any cash paid out to the shareholders takes the form of a dividend. 22. Suppose that KAN's beta is 1.5. If the market risk premium is 8% and the risk-free interest rate is 4%, then the expected return for KAN stock is? a. 8.0% b. 16.0% c. 13.5% d. 10.0% Use the following information to answer questions 24-25: Food For Less (FFL), a grocery store, is considering offering one hour photo developing in their store. The firm expects that sales from the new one hour machine will be $150,000 per year. FFL currently offers overnight film processing with annual sales of $100,000. While many of the one hour photo sales will be new customers, FFL estimates that 60% of their current overnight photo customers will switch and use the one hour service. 23. The level of incremental sales associated with introducing the new one hour photo service is closest to: a. $90,000 b. 150,000 c. 60,000 d. 120,000 24. Suppose that of the 60% of FFL's current overnight photo customers, half would start taking their film to a competitor that offers one hour photo processing if FFL fails to offer the one hour service. The level of incremental sales in this case is closest to: a. $60,000 b. $150,000 c. $90,000 d. $120,000 25. You are considering adding a microbrewery on to one of your firm's existing restaurants. This will entail an increase in inventory of $8,000, an increase in accounts payable of $2,500, and an increase in property, plant and equipment of $40,000. All other accounts will remain unchanged. The change in net working capital resulting form the addition of the microbrewery is a. $45,500 b. $10,500 c. $6,500 d. $5,500 26. Bubba Company reported net income of $300 million for the most recent fiscal year. The firm had depreciation expenses of $125 million and capital expenditures of $150 million. Although they had no interest expense, the firm did have an increase in net working capital of $20 million. What is Bubba's free cash flow? a. $170 million b. $255 million c. $150 million d. $5 million 27. Consider a project with free cash flows in one year of $90,000 in a weak economy or $117,000 in a strong economy, with each outcome being equally likely. The initial investment required for the project is $80,000, and the project's cost of capital is 15%. The risk-free interest rate is 5%. The NPV for this project is closest to: a. $6,250 b. $14,100 c. $10,000 d. $18,600 28. Suppose that Taggart Transcontinental currently has no debt and has an equity cost of capital of 10%. Taggart is considering borrowing funds at a cost of 6% and using these funds to repurchase existing shares of stock. Assume perfect capital markets. If Taggart borrows until they achieve a debt-to-equity ratio of 20%, then Taggart's levered cost of equity would be closest to: a. 8.0% b. 9.2% c. 10.0% d. 11.0% 29. Which of the following statements is false? a. In perfect capital markets, buying and selling securities is a zero-NPV transaction, so it should not affect firm value. b. Making positive NPV investments will create value for the firm's investors, whereas saving the cash or paying it out will not. c. In perfect capital markets, if a firm invests excess cash flows in financial securities, the firm's choice of payout versus retention is irrelevant and does not affect the initial share price. d. After adjusting for investor taxes, there remains a substantial tax advantage for the firm to retain excess cash. 30. Which of the following statements is false? a. A call option gives the owner the right to buy the asset. b. A put option gives the owner the right to sell the asset. c. A financial option contract gives the writer the right (but not the obligation) to purchase or sell an asset at a fixed price at some future date. d. A stock option gives the holder the option to buy or sell a share of stock on or before a given date for a given price. 31. Wyatt Oil has 8 million shares outstanding and is about to issue 10 million new shares in an IPO. The IPO price has been set at $15 per share, and the underwriting spread is 6%. the IPO is a big success with investors, and the share price rises to $35 the first day of trading. The amount that Wyatt Oil raised during the IPO is closest to a. $113 million b. $141 million c. $150 million d. $329 million
Question 5
Need written 5 pages based on the attached case answering the following questions ONLY...along with powerpoint. 1. Company background, mission, goals, and strategies Suggest a company's mission statement. List the organization's official goals (where the organization wants to go), and make sure to tie said mission statement to the organization's official goals and suggest a strategy or strategies to accomplish it (how it will get there). 2. Organizational structural design While there is no one best way to organize, the right structure depends on prevailing circumstances and considers organization goals, strategies, technology, and environment. According to Robey and Sales (1994), "in practice, very few examples of purely functional and self-contained departmental structures can be found. Rather, we find a wide variety of mixed structures, which contain elements of both bases at the same level of management (p. 195). In designing the new structure to improve Cedar Tech's effectiveness, students should take into consideration its management' s vision and the pursuit of the growth strategy including adding new offerings. You may give students a hint of the general approaches that could be taken. One approach would be to add a new vice president for technology. In this regard, a director of newly formed VOIP practice, the director of enterprise storage practice (formerly manager), and the director of services (formerly help desk manager) report to him/her instead of reporting to the vice president of operations. Additionally, VOIP and security engineers and project managers will report directly to the new director of VOIP; whereby storage engineers and storage project managers report directly to the director of enterprise storage. Finally, all technicians will report directly to the director of services (since the organization has many technicians, suggest that 3-4 supervisors are needed). According to Burton et al. (2006), the choice of an organization's configuration, known as structure or architecture, is a critical decision. According to them, "In the literature on organization design two fundamental dimensions have been used to distinguish the basic configurations: Product/service/customer orientation and functional specialization" (Burton et al. 2006, p. 58). These two dimensions generate four basic configuration-namely: Simple, functional, divisional, and matrix (Burton, 2006; Miles & Snow, 1978). Hint to students that organizational charts in most growing organizations are not static, they are ever changing. At the heart of any organizational design are the twin issues of differentiation and integration. While vertical differentiation is the method by which an organization designs its hierarchy of authority and decides its reporting relationships to link roles and subunits, horizontal differentiation is how an organization groups tasks into roles and groups roles into subunits, meaning functions and divisions (Daft, 2004; Jones, 2007). Students should show the variety of specialized roles, functions, and units and tie the various elements together by means of vertical and horizontal techniques for integration. It is important that students address the advantages and disadvantages of their design; and argue that the number of levels in its hierarchy and the span of control at each level are appropriate. It makes sense to promote or add new director to head each major sales specialization; example: Director of government, education, and medical sales, director of small and medium sales, and director of enterprise sales. Promoting human resources manager and other key mangers to director' s position might make sense too . Another general approach would be to create a separate software licensing department under a director that marker and fulfill software licensing sales requirements. Said director might report to the vice president of sale. Ask students to draw their specific alternatives on the board. A hybrid form of structure would be one specific possibility, with software licensing advisors reporting to both director of software licensing and to the various key sales specialization (Enterprise, GEM, and SMB sales) using the "matrix" form, and other functional departments such as sales, operations, finance, and technology reporting to each of the functional vice presidents via director (s). The functional heads who would still report directly to the president would probably be finance, technology, sales, and operations. The new structure must take into account the high coordination across functions relative to any given customer's requirements, necessary for the projects to complete. Additionally, the new structure must emphasize client satisfaction with vertical and horizontal information easily flows by grouping together the individuals who communicate with one another. 3. Motivating and rewarding employees Responses should focus on how to create a motivating work environment through job design, socialization, organizational objectives, and goal setting. Obviously, people work for many different reasons. The most obvious reason is the need for money. However, for many, money alone is not what keeps them showing up for work every day (Greenberg & Baron, 20003).discuss the importance of some of the theories learned and their impact on employees' motivation such as the equity theory, ways to restore it, and the effects of inequity; organizational justice, its forms, and its consequences; and expectancy theory that explains how employees make choices among alternative behaviors and levels of efforts (Griffin, 2008; George & Jones, 2008; Kreitner & Kinicki, 2007). In addition to this, managers should promote a healthy workforce by satisfying employees ' physiological needs through providing them with membership in a fitness center or subsidizing such membership. In addition to that, management should provide a supportive working environment and safe working conditions. It is important to also provide an opportunity to socialize. More importantly, management should compensate employees in relation to work performed, thereby avoiding underpayment. Organizations that practice underpayment are always looking to fill out vacancies resulting from voluntary turnover. Managers also need to identify goals and clarify the amount of work needed by employees to achieve and tie it to an effective reward system. Additionally, it is also recommended that managers should involve employees in the formulation strategy of their work goals especially if these goals directly affect them. Employees tend to accept and easily commit to goals if they helped formulate them or took part in their formulation (Ghazzawi, 2007). To be effective, mangers also need to provide timely performance feedback. Finally, management should recognize employee achievements. Such recognition and award will satisfy employees' esteem needs. In doing so, managers should clearly link rewards to performance (Greenberg & Baron, 2008).
