case 23-2 Industrial Electronics, Inc

1. Evaluate (ie, discuss the pros and cons of) the current bonus system.

2. Calculate the bonus award (percent of the base salary) that would be given to the manager of each of the following for divisions under the proposed new bonus system. These divisions are representatives of the range, of divisions, within IE.

3. Evaluate the proposed bonus system.

4. Propose a bonus system that you believe is optimal for IE. Why do you think your proposed system is optimal? Explain.