Essay Example on the Social and Economic Growth of Company

1. What does the term meritocracy mean?

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Meritocracy means rewarding employees with pay, bonuses, and opportunities to advance based on their performance. It implies that employee's merits determine the compensations programs. In its simplest term, it is paying for performance. Organizations with meritocracy culture place more emphasis on the employees skills, ability, and performance. Most large organizations believe that to have a competitive advantage and be successful they need to attract and retain top talent by promoting meritocracies culture of recruiting, rewarding and promoting employees based on their merit.

2. What does the phrase reasonable greed mean?

Reasonable greed is the basic desire that drives people to achieve more. Greed is considered reasonable when it fuels growth which in turn creates more employment opportunities and adds value to the economy. It helps workers attain their needs to positively impact the social and economic growth.

3. What is the role of the CEO?

The role of CEO entails being a business savvy to lead the development and implementation of the companys long-term strategy with a vision of creating shareholders value. CEO should possess leadership skills required to make management decisions for executing the companys long term and short terms plans. CEO is also responsible for representing and addressing the interest of the company to shareholders and other interest groups.

4. Is executive pay excessive?

The subject of excessive executive pay is controversial since many variables must be considered in determining the right amount of executive pay. However, several large companies executive salaries have apparently become excessive in that the ratio of compensation of the top executive to the lowest paid employees is very high. Though the excessive executive salaries are being justified by the need to pay the executive the market price, companies should consider compensating executive base on their contribution to the overall organization performance.

5. What are some of the things that motivate the overconfident executive?

Various researchers suggest that self-interest does not necessarily motivate overconfident executives and manager. Overconfident is driven by fear of uncertainties and negative perceptions on the future of a company with bad reporting periods. It is motivated by a strong belief that covering a companys poor performance is to the benefit of the company and its shareholders. CEOs get overconfident that the company will recover without exposing any period of poor performances

6. Should the minimum wage be increased to $15 an hour?

Economists and proponent of the increase in minimum wage are confident that it will help create more employment and grow the economy. They argue that the declining value of the minimum wage is the reason behind wages inequality. The increase in the minimum wage to the low-income workers will decrease their dependence and entitlement for government benefits. Raising the minimum wage to $15 per hour would increase productivity and economic activity as well as match up with the inflation rate.