Access Millions of academic & study documents

842673570946 Compare And Contrast Two Events Motivated By Incentives

Content type
User Generated
Subject
Economics
Type
Homework
Showing Page:
1/3
Compare and contrast two events motivated by incentives, one where the self-interested behavior was
good for society and the other where it was bad.
An incentive is a thing that motivates or encourages someone to do something which maybe a
payment, or concession to stimulate greater output or an investment. Incentives incites
individuals, businesses or companies to offer greater effort as reward given for increased
productivity. A business man had two employees from his two different companies who had
pursued the same career in accounting thus got employed as accountants in the different
companies. One company was manufacturing cement while the other was manufacturing tiles
from which both the companies were interdependent. When cement’s finished product was
produced, the tiles company had to take over from there and use the finished product to
manufacture tiles. The companies were very successful and the funds were run well without any
misuse.
The owner of the company, due to the success he was having he decided to promote his
accountants with a rise in their monthly pay. This was to be done until they achieve a certain
goal that they had put in place. This incentive motivated both the accountants to work extra hard
and put more effort that even before. The companies rose to an extent they were to be publicized.
Time came and both the accountants were granted their incentive which they were informed that
as they keep on managing funds appropriately they will be awarded something bigger than what
they had been crowned.
After the salary increment, the accountant on the cement side loved the work and was self-
interested with what he was doing regardless of the incentives. On the other hand the other
accountant on the tiles company did his work just because he knew there must be incentives and
the success of the cement company lead to the success of the tiles company. The Accountant
from the cement company due to his behavior, he kept doing his work with passion to an extent

Sign up to view the full document!

lock_open Sign Up
Showing Page:
2/3
he could sacrifice his time for the company. Fortunately, there were some more workers
employed to both companies who lived around the community which was creating job
opportunities to the residents around. The Accountants were still required to be involved in
adding them in the payroll which was done perfectly.
Time came and the owner of the companies was to leave for a journey and decided to leave each
company to its own accountant. Finally, he left each under its own accountant, who were given
all rights that the owner possessed. They were told that if each company made bigger profits,
each was to be made a shareholder of his company.
It came a time when there was a commotion in the cement company caused with the Accountant
having not given a break to his workers. This was brought up by his self-interest behavior to
work even during odd time forgetting that he had employees who were to be released. This made
many employs resign from the company which made it to make losses severally. In the long run,
the Accountant noticed that he was on the wrong side therefore adjusted which also favored the
employees who were left. With the few, the Cement Accountant started making profits with his
few workers who fully supported him due to his work. Luckily, more a more employs came to
ask for employments opportunities and they were admitted with or without professionalism
which was to be lent in the Couse of working. The Accountant started making huge profits and
therefore expanded the company.
The Accountant on the Tiles company, due to the absents of the owner and the rights that he was
granted, he was not used to coming and see the progress of his “company”. He deducted the
wages for his workers and oppressed them by sending some employers away. Since, then he used
to squander employers wages from which he deducted, he fired a number of employees so that
he could use that money to run his businesses and for his own betterment. The Accountant used

Sign up to view the full document!

lock_open Sign Up
Showing Page:
3/3

Sign up to view the full document!

lock_open Sign Up
Unformatted Attachment Preview
Compare and contrast two events motivated by incentives, one where the self-interested behavior was good for society and the other where it was bad. An incentive is a thing that motivates or encourages someone to do something which maybe a payment, or concession to stimulate greater output or an investment. Incentives incites individuals, businesses or companies to offer greater effort as reward given for increased productivity. A business man had two employees from his two different companies who had pursued the same career in accounting thus got employed as accountants in the different companies. One company was manufacturing cement while the other was manufacturing tiles from which both the companies were interdependent. When cement’s finished product was produced, the tiles company had to take over from there and use the finished product to manufacture tiles. The companies were ve ...
Purchase document to see full attachment
User generated content is uploaded by users for the purposes of learning and should be used following Studypool's honor code & terms of service.
Studypool
4.7
Indeed
4.5
Sitejabber
4.4