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CIMA Exam CIMAPRA19-E03-1 Topic 4 Question 102 Discussion

Actual exam question for CIMA's CIMAPRA19-E03-1 exam
Question #: 102
Topic #: 4
[All CIMAPRA19-E03-1 Questions]

HHH is a manufacturer which has a bonus scheme for its production workers related to the speed of output. HHH's products are very specialized and are made in a dangerous production environment. HHH's production workers usually work alone but sometimes, if there are problems in the production environment (for example, machinery breakdowns), they have to work in teams. When the production workers are working in teams they do not receive any bonus.

HHH's senior management is proposing to amend the current bonus scheme to encourage increased productivity. Under the current bonus scheme, production workers receive extra pay when they achieve 45% of their individual target: The target level is low because of the dangerous production environment and the need to occasionally work in teams.

Under the proposed bonus scheme, production workers will not receive any extra pay until they have achieved 90% of their individual target. Workers who achieve 90% or above of their individual target will be paid a 30% higher bonus.

Which THREE of the following problems is HHH most likely to encounter with the introduction of the proposed bonus scheme? (Choose three.)

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Suggested Answer: A, D, E

Contribute your Thoughts:

Krissy
5 days ago
But on the other hand, maybe the higher bonus will actually motivate them to work harder.
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Ilona
6 days ago
Increasing productivity at the cost of worker safety? That's a disaster waiting to happen.
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Lasandra
8 days ago
Yeah, I agree. It could demotivate them if they feel like they can't reach it.
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Latonia
14 days ago
The new target of 90% is way too high! That's going to demotivate the workers for sure.
upvoted 0 times
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Evan
20 days ago
I think the production workers might find the new target unachievable.
upvoted 0 times
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