Question
What was Hawthorne’s observation regarding people’s
behaviours at workplace?Solution
The Hawthorne experiments discovered that if people are treated with due respect and managers take an interest in them (or in other words treat them as Theory y employees), they are more likely to be motivated to higher performance and thereby be of more value to the company. While the experiments were carried out in the late 1920s they still have application and relevance today since they recognised that employees are people who need a sense of belonging to unlock commitment, loyalty and motivation.Â
Which of the following statement concerning credit risk is incorrect?
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