i) Rational decision-making There are two ways in which people make decisions in their daily life or at work: Intuitive or rational. If we talk about intuitive decision-making (IDM) we talk about the subjective decisions that are not based on any facts and purely instinctive, for example whether or not to cross the street. These decisions are fast occurring, have no any need for reasoning and are used if facts are unavailable or making a decision is very difficult. On the other hand we have the rational decision-making (RDM), which is used to come up with a fact-based decision. This way of decision-making is objective, more complex and a multistep process. It is the analytical way, based on facts, to come to a decision rather than fully …show more content…
In 2012 he receives a wage increase of 2%, increasing his nominal wage to £25.500. To find out his real wage and how his purchasing power (PP), which indicates the amount of goods and services that can be bought with one unit of money, changed we have to take into account the CPI’s for both years. In 2011 the annual average CPI in the UK was 93.4 and 96.1 in 2012. With these information’s and the help of the formula we can now calculate the real wage of the employee: Real wage = (£25.000 x 96.1) / 93.4 = £25.722,70 This result shows the employee has to earn £25.722,70 in 2012 in order to keep his purchasing power at the same level as in 2011 when his wage was £25.000. By looking at the numbers it gets clear that his purchasing power got less despite the increase in his wage as he only earns £25.500 instead of the £25.722,70 that he needs to keep his purchasing power at the same level. This results in the employee being worse off. To calculate the change in his purchasing power (CPP) we can use the following formula: CPP = ((PP of the old wage – new wage) / PP of old wage) x 100 = ((£25.722,70 – £25.500) / £25.722,70) x
The rational decision theory is a method for thoroughly selecting among possible choices that are built on reasoning and facts. With a decision, making process one may employ a series of logical steps to overview relevant facts, observations, and potential outcomes before choosing a specific course of action.
The following table demonstrates the PV of costs, the PV of benefits and the NPV respectively, over 5-year period for the investment:
The four simple steps taught me how. Making decisions will be significantly easier if I utilize the DDM. I know that the D.A.R.E. Decision Making Model will be beneficial to me even as I grow older and I am grateful that I have learned such a useful tool to implement in my life. D.A.R.E. has taught me useful techniques, tips, and strategies that will undoubtedly impact my actions in the future.
The Web. 17 Feb. 2014. Mazerolle, Brent. A. "Wage Gap Is 'More than Just a Dollar Figure'" Times [Moncton] 11 Feb. 2014: A.6. Print. The. Moscatello, Caitlin.
PAY INCENTIVES. According to Taylor, “What the workmen want from their employers beyond anything else is high wages.” This “economic man” assumption led Taylor to believe that piece rates were important to improved productivity . Under traditional piece-rate plans, an individual received a fixed amount of money for each unit of output. Thus, the greater the output, the greater the pay. In his determination to find a better way, Taylor attempted to improve the traditional piece-rate scheme with his differential piece-rate plan.
The objective of this paper is to provide insight into Rational Choice Theory. This theory, highly relied upon by many disciplines, is also used to calculate and determine crime and criminal behavior. Through definition, example and techniques utilized by criminologists, the reader will have a better understanding of the subject.
Employees often overestimate their coworkers’ pay when it is kept a secret. This leads to overall lower job satisfaction, which in turn hurts workplace productivity. In general, employees work more productively when pay structures are transparent and predictable (Chamberlain para 5). If employees become aware of the wages their associates earn, they will know where they stand in their company, and they will feel happier. This will lead to increased workplace efficiency and will help businesses in the United States increase their profits. Additionally, pay transparency has already helped lower the wage gap in several countries. Britain, Austria, and Belgium have all signed laws requiring employees working in the countries to report their wages. These legislations provided the pressure needed to force companies to increase working women’s wages (Lipman para. 5). PricewaterhouseCoopers, a multinational professional services network, released its British employees’ wages to the public in 2013. The report shows a clear separation between the wages that male and female workers in the company earned that year. Since then, the business has proceeded to work on lowering their gender wage gap, and their pay discrepancy has significantly decreased (Lipman para. 6). A pay transparency law has already succeeded in lowering the wage
The wage determination system has moved from centralised determination through National Wage Cases towardst an enterprise bargaining framework. Safety nets are there mainly for low paid workers who are unable to secure wage increases under enterprise bargaining. There has been sustained moderate wage increases, low inflation, strong productivity growth and employment growth. This system appears to generate the best of both enterprise agreements and centralised wage determination.
In this case study, Laura and Danny have had significant changes in their lives. Laura has now left with the children and planning on moving with them to El Paso, Texas in a month. She has also filed for divorce from Danny. While Laura is making positive improvements to her life she is still concerned for Danny. She goes to collect what’s left of her belongings when she finds Danny in a state of panic. Danny has let himself go at this point. He started consuming alcohol, has not found a job, and is living with no electricity. Kid decides to pay Danny and Laura a visit and he quickly realizes Danny is in trouble. Danny begs for Kid’s assistance in order to help him start a new life. Danny is worried that he will end up alone and homeless
Author Greg IP, describes real pay as the amount an individual makes in monetary terms after accounting for inflation. The logic behind this theory is that “the more a worker produces for his employer, the more he’ll earn” (Ip, 2013, p. 58). Greg Ip, provides an example of this theory and its dilemma in his book titled The Little Book of Economics: How the Economy Works in the Real World. Greg Ip, states that “someone with a backhoe can dig more than someone with a shovel”, therefore it may be expected that the employee who produces more is compensated respectively (Ip, 2013, p. 58). However, the employment world does not always guarantee that the highly productive employee will benefit more than the employee with less productivity and often it is the “employer” who gains the capital profitability in this employment agreement and other times it is even the consumer of the product or
The topic for my real world negotiation is to come to an agreement with my supervisor for a promotion as well as an increased salary. I currently work as a student assistant at the student services Planning, Enrollment Management, and Student Affairs (PEMSA) department. My goal is to increase my hourly pay from $10.15 to $12.70, a 25% increase. Having worked in this department for three years, I have taken on tasks not part of my job description such as processing return mail, data entry, and supervision.
Decision making, as taken from the Wikipedia (2006) encyclopedia, is defined as "the cognitive process leading to the selection of a course of action among alternatives. Every decision making process produces a final choice called a decision. It can be an action or an opinion. It begins when we need to do something but we do not know what. Therefore, decision-making is a reasoning process which can be rational or irrational, and can be based on explicit assumptions or tacit assumptions." (para.1). Decisions made by using a decision-making model typically result in better decisions. Decisions resulting from the model tend to be more consistent since the same steps are followed each time. Increased thoroughness of decision options considered is another benefit in using a decision-making model, as numerous factors are taken into account.
Individuals make economic decision based on a variety of reasons. The rational is based on each individual’s need or desire for a commodity. People go through several decision-making processes before making the final decision and are often not conscious of the process. Obviously, decision- making covers a wide area, involving virtually the whole of human action. Often people are not conscious of the process.
Taylor, A. M. & Taylor, M. P., 2004. The Purchasing Power Parity Debate. Journal of Economic Perspectives, 18(4), pp. 135-158.
An employee does an unsatisfactory job on an assigned project. Explain the attribution process that this person's manager will use to form judgments about this employee's job performance.