• If you had to decide whether to continue making a component part or to begin buying the part from an overseas supplier, what quantitative and qualitative factors would influence your decision? Why?
• What are the opportunity costs you incur by attending class?
• If you were a restaurant owner, what internal controls would you implement to help maintain control of your cash?
• Managers often assume a strictly linear relationship between cost and the level of activity. Under what conditions would this be a valid or invalid assumption?
• In a Harvard Business Review article titled Why Incentive Plans Cannot Work, (Volume 71, Issue 5) author Alfie Kohn wrote: Research suggests that, by and large, rewards succeed at securing one thing only: temporary compliance. When it comes to producing lasting change in attitudes and behavior, however, rewards, like punishment, are strikingly ineffective. Once the rewards run out, people revert to their old behaviors. . . . Incentives, a version of what psychologists call extrinsic motivators, do not alter the attitudes that underlie our behaviors. They do not create an enduring commitment to any value or action. Rather, incentives merelyand temporarilychange what we do.

1. Do you agree with this quote? Why?
2. As a manager, how would you seek to motivate your employees?
3. As a manager, would you use financial incentives to compensate your employees? If so, what would be the keys to using them effectively? If not, then how would you compensate your employees?