MGMT 317 CSU Fullerton Sources of Power How People Make Decisions Article Essay

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Business Finance

MGMT 317

California State University Fullerton

MGMT

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Hello , I want someone to help me with my Management essay , which will be an Article that you have to read and answer 2 Questions.

I attach the Article that you have to read , but the Questions might not be the same . because the professor will post the actual Questions on Jun 26 at 12 pm Arizona USA time .

the Questions that i attached are from the last semester 2019 , so it might be the same and it might be different . I just attached it so you can have a look at it and get some ideas .

what i want from you is to be ready on Jun 26 12pm Arizona USA time because i will be sending the Actual Questions , and the deadline will be at 11:59pm jun 26 . so that mean you have 11 hours to finish it up .

please make sure its your original work , no copying please .

** if you want me to send some Examples from the last semesters let me know .

thank you

** please don't make a bid if you will not going to be able to do it

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EXCHANGE --- The Captain Class: The Airline CEO Who Canceled His Salary --- With his pay entirely in stock, Doug Parker wanted to change American Airlines' culture Walker, Sam . Wall Street Journal , Eastern edition; New York, N.Y. [New York, N.Y]18 May 2019: B.6. ProQuest document link FULL TEXT Roughly three months ago, Doug Parker, the chief executive of American Airlines, wrote his company a personal check for $10,000. For a 57-year-old airline industry titan who earned almost $12 million on paper last year, the dollar figure wasn't too significant. The remarkable thing about this payment is why he made it. Four years ago, during a boom in executive compensation, Mr. Parker stunned many CEOs (not to mention their accountants) by asking American's board to start compensating him exclusively in stock. Since then, he's been leading the world's largest airline without a salary, a bonus, or even a matching 401(k) contribution. This unusual plan, unique among airline CEOs, effectively erases Mr. Parker from the company's payroll. Since American can't deduct the cost of his health insurance, he's on the hook for it. Hence, the $10,000 check. Many CEOs can rightfully say that a majority of their pay is tied to the company's performance, although that's hardly a perfect science. Only a few, however, have dared to join Mr. Parker in the 100% stock club. One of the reasons Mr. Parker favors this approach is the same one that makes it frightening: It subjects him to the same risks as American's shareholders. Given the level at which top executives are paid, he says, it's only fitting that their interests should be aligned with investors. "I don't know why all CEOs don't do the same. It seems really logical." Mr. Parker, who took over at American in 2013 after its merger with US Airways, said he also hoped this symbolic gesture would signal to American's employees that he was a different breed of airline executive. "Nothing about this is some earnings-maximization policy of mine," he says. The shares Mr. Parker receives are not options: They're granted at the current market price and may decline in value before they vest. In addition, the value of the shares he gets and how soon they vest depends in large part on how well American performs over time, relative to rival airlines. Put simply, Mr. Parker isn't likely to outearn his industry peers unless American has a series of bang-up years. When this arrangement began, the airline industry was still emerging from a brutal stretch of bankruptcies, mergers and historic labor strife. Few investors saw major carriers as healthy, viable businesses worth accumulating stock in. When Mr. Parker first broached his unorthodox plan, a few friends on the board pulled him aside to ask him what he was thinking. To Mr. Parker, this lingering prejudice against airlines was American's biggest problem. "It was time to get out of survival mentality," he says. Choosing stock over ready cash and short-term incentives would signal that he was bullish about the long term. His message at the time: "We're good. This business has been transformed. It's time to worry about building." For the record, nobody -- including Mr. Parker -- interpreted this plan as a vow of poverty. If American's share price booms, he stands to earn more than he'd get from a traditional pay package. Besides, he admits, the reason he's in a position to ditch his salary is that he's already benefited from years of generous compensation. Over the last PDF GENERATED BY SEARCH.PROQUEST.COM Page 1 of 4 three years, the airline stock-appreciation rights he'd earned before 2015 have helped him pocket more than $50 million. "I've been extremely fortunate," he says. Mr. Parker also knew that no compensation formula could eliminate the perception among many longtime airline employees that executives like him care only about lining their pockets. He was right about that. "He can put whatever kind of Boy Scout explanation he wants on the way he gets paid," says John Samuelsen, international president of the Transport Workers Union, which has been in protracted negotiations with American. "It doesn't matter to the average worker -- all we know is that he's rich and we're not." While it may not be especially brave, there's a fair argument to be made that Mr. Parker is doing something commendable. In 2015, when he retooled his own compensation, many of American's workers were underpaid by industry standards. Mr. Parker set out to rectify that by offering workers mid-contract pay raises. He also decided that until his employees achieved pay parity, he would ask the board to set his annual income targets about 20% below what his peers at United and Delta were expected to make. "I'm doing this because it feels better," he says. In another unorthodox move, he asked the board in 2016 to tear up his employment contract, making him the rare CEO who serves as an at-will employee without any special protections. So far, Mr. Parker's experiment hasn't broken any compensation records. He's earned about $11.7 million a year on average. Median pay for the CEOs of the biggest U.S. companies in 2018 was $12.4 million. Although American has turned a profit in five straight years, its stock has skidded to about $32 from last year's high of $59. The unvested shares Mr. Parker earned in 2018 have lost nearly half their value. "I'm not complaining," he says. "I feel the stock will rebound." In his quest to improve American's culture, Mr. Parker hosts monthly town halls and meets informally with employees aboard planes. When the pricey seats are full, he flies in coach. Mr. Parker recently posed with a mortified flight attendant who accidentally spilled a tray of drinks on him. "I want people to know they work for a company that cares about them," he says. His effort to change the culture has seen its own share of ups and downs. The airline finished next-to-last in 2018 in The Wall Street Journal's annual study of on-time performance. And despite posting an above-average rating in J.D. Power's 2015 study of airline customer satisfaction, American has fallen below the average in each of the past three years. Mr. Parker says he has seen some progress. Workers rarely complain to him about the indifference of management, as they used to. They tend to lobby him for better tools to do their jobs. The company's first employee survey in 2017 found that two-thirds said they were proud to work at American. In the meantime, there's another group Mr. Parker hopes to lead -- fellow chief executives. For years, he says, CEOs have fought to be paid the same as their peers, only to see their rivals receive counterhikes the next year. "That doesn't seem right, frankly," he says. By opting out of this perpetual loop, "I like thinking that I'm not facilitating that." Even if he never outearns his airline counterparts, Mr. Parker's approach to compensation does afford him one unique luxury. He gets to imagine how they must feel defending their own pay. "They have to talk about how their compensation is higher than mine," he says. --Mr. Walker, a former reporter and editor at The Wall Street Journal, is the author of "The Captain Class: A New Theory of Leadership" (Random House). Credit: By Sam Walker DETAILS PDF GENERATED BY SEARCH.PROQUEST.COM Page 2 of 4 Subject: Executive compensation; Investments; Wages &salaries; Airline industry; Employees; Workers Location: United States--US People: Parker, Doug Samuelsen, John Parker, W Douglas Company / organization: Name: J D Power &Associates; NAICS: 541910; Name: Random House Inc; NAICS: 511130; Name: Wall Street Journal; NAICS: 511110, 519130; Name: American Airlines Inc; NAICS: 481111 Publication title: Wall Street Journal, Eastern edition; New York, N.Y. First page: B.6 Publication year: 2019 Publication date: May 18, 2019 Publisher: Dow Jones &Company Inc Place of publication: New York, N.Y. Country of publication: United States, New York, N.Y. Publication subject: Business And Economics--Banking And Finance ISSN: 00999660 Source type: Newspapers Language of publication: English Document type: Opinions, Commentary ProQuest document ID: 2226672311 Document URL: http://login.ezproxy1.lib.asu.edu/login?url=https://search.proquest.com/docview/22 26672311?accountid=4485 Copyright: Copyright 2019 Dow Jones &Company, Inc. All Rights Reserved. Last updated: 2020-01-07 Database: ABI/INFORM Collection,The Wall Street Journal,Global Newsstream LINKS Get It! @ ASU PDF GENERATED BY SEARCH.PROQUEST.COM Page 3 of 4 Database copyright  2020 ProQuest LLC. All rights reserved. Terms and Conditions Contact ProQuest PDF GENERATED BY SEARCH.PROQUEST.COM Page 4 of 4 MGT 380 Final Exam Questions for summer 2019 Name: [Put your name here] The Final Exam is comprised of two equally weighted sets of questions based on the article from The Wall Street Journal, “EXCHANGE - - - The Captain Class: The Airline CEO Who Canceled His Salary…” May 18, 2019.Your answers should explicitly identify course concepts and use course terminology. Question 1: Look at Doug Parker’s role as CEO of American Airlines and chapter 14 (Leadership) in your textbook. How did Doug Parker’s actions, as described in the article (first cutting his pay to 20% below industry average, and then eliminating his salary altogether and relying solely on stock for compensation, flying coach…) have an impact on his Five Sources of Power (as described in chapter 14)? [put your answer to Question 1 here. Your answer should have a separate paragraph for each of the Five Sources of Power] Question 2: As a Leader, Doug Parker is trying to influence the employees at American Airlines to do something[s]. From the Nine Common Influence Tactics listed in chapter 14, choose three of these influence techniques to explain what he might be trying to do with the American employees, and how successful you think he might be in his endeavors. [put your answer to Question 2 here. Your answer should have a separate paragraph for each one of the three influence tactics you choose to analyze]
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Attached.

MGT 380 Final Exam Questions for summer2020
Name: [Put your name here]
The Final Exam is comprised of two equally weighted sets of questions based on the article
fromThe Wall Street Journal, “EXCHANGE - - - The Captain Class: The Airline C.E.O. Who
Canceled His Salary…” May 18, 2019. Your answers should explicitly identify course concepts
and use course terminology.

Question 1: Look at Doug Parker's role as C.E.O. of American Airlines and chapter 14
(Leadership) in your textbook. How did Doug Parker’s actions, as described in the article (first
cutting his pay to 20% below the industry average, and then eliminating his salary altogether
and relying solely on stock for compensation, flying coach…) have an impacton his Five Sources
of Power (as described in chapter 14)?

[

The actions taken by Doug Parker, the C.E.O. of the American Airlines had a profound

impact on the five sources of power as set out in the sources of power. [1] Legitimate authorityThe C.E.O. had absolute positional power in the organization under his helm. To this end,
holding the position of the chief...


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