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World Furry Healthcare (WFH) is an Australian pet insurance company. It has 50 claims examiners in the Sydney division, who are each paid a

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World Furry Healthcare (WFH) is an Australian pet insurance company. It has 50 claims examiners in the Sydney division, who are each paid a fixed salary of $65,000 to process claims. Currently 5,000 new claims are processed each day on average, but 15% are processed incorrectly. Incorrectly processed claims have to be reassessed, which is costly and time consuming. Havana Brown, the state manager, is not satisfied with the current volume of claims processed. She has instructed Sam Sawet, the Sydney division manager, to devise a compensation scheme to motivate the claims examiners to work faster. - However, Sam is concerned that the examiners would make more errors by working faster part of her own compensation is currently based on keeping divisional costs down! Required: A. Suggest an incentive scheme for the claims examiners that will address both Havana's and Sam's concerns. Use principles of agency, goal setting, and expectancy theories to inform your answer (note: you do not need to refer to every part of every theory). B. Provide one (1) efficiency and one (1) effectiveness measure that would help you assess how well the plan you suggested in (A) is working and explain why you have chosen them.

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