Question 1 C9 Read Exhibit 9.3 and examples described on pages 311 and 312 and answer the following questions. For companies with high variability in performance, the textbook used airline companies' performance as an example. Can you think about another industry with a similar situation (i.e., high variability in performance)? What factor(s) makes performance vary a lot in this industry? In your example, what types of jobs have unstable and unclear performance measures in this industry? what types of jobs have stable and clear performance measures in this industry? What are your compensation strategies for these two types of jobs? Question 2 - C10 Compute the cost of merit pay and merit bonus based on Exhibit 10.6 Based pay $40,000 Merit Pay $40,000 Merit Bonus $40,000 Year 1 payout 2.5% New based pay Extra cost total (as of Year 1 end) Year 2 payout 2.5% New based pay Extra cost total (as of Year 2 end) Year 3 payout 2.5% New based pay Extra cost total (as of Year 3 end) Based on your computation, what is the difference in extra cost total by the end of Year 3? What caused this difference? What is the difference between Merit Pay and Merit Bonus? In your view, how do these plans impact the quality of work and organizational performance? Question 3 Some companies award vacation and sick leave time according to seniority/tenure, whereas others base the allocation of these benefits on employee performance. In your view, which approach is more justice- oriented? Discuss the rationale for your answer (you can discuss based on procedural and distributive justice perspectives). Do you think it is ethical to offer financial incentives to employees who participate in a wellness program? How about penalties for choosing not to participate? Explain your answers.