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Human Resource Management

1. Explain why executive stock option plans became very popular in the 1990's? Do you believe the white-collar crime scandals of 2001-2002 will dampen the enthusiasm for stock option plans?

2. How can a person's acquisition of knowledge be determined so that his or her pay can be changed? Explain.

3. Explain the meaning and intent of a feedback pay system.

4. Explain the concept of a variable pay system.

5. How do you want your compensation package determined? Explain.

Solution Preview

Hi there,

Here are your answers:

1. Stock option plans became so popular because it was a way of rewarding employees, yet at the same time, the expense did not hit the company's books. I think in the short term, the scandals would dampen enthusiasm, but in the long term people will forget about them and will once again be very enthusiastic about them.

2. A person's acquisition of knowledge can be determined ...