Read the Tale of Two Firms from page 20 in the text. Respond to the following four questions using textbook terms & concepts. Reference your completed class summary sheet to assist you in your response.

1. For each firm note if there is consideration of extrinsic rewards? intrinsic rewards? Provide specifics for each reward if identified. (4 marks)

1. Review the 8 Goals of the Reward and Compensation System, found on page 10. Suggest how each firm meets or does not meet each of the 8 goals? (12 marks)
2. What is the main purpose of a compensation system? Describe how the systems of these two firms do or do not fulfill that purpose? (5 marks)

Which firm/firms is/are reflective of having implemented the optimal reward system, defined as adding the most value after considering all costs? Support your position.